“A lack of full exits means it is too soon to say how well this latest generation of GP-led secondaries will fare, but the ingredients for success are all in place.”
How would you describe the supply/demand dynamics that you are seeing in the GP-led secondaries market today?
We are seeing strong demand for liquidity from the fund investor community, which is driving GPs to use the secondaries market more and more to generate liquidity options, in part also to facilitate new fundraising activity. What is particularly interesting in the current environment is that the quality of deals that we see is – on average – a lot higher than was the case two or three years ago.
Meanwhile, my perception is that only the highest quality opportunities are getting across the line. There seems to be a real bifurcation in the market. Those high-quality transactions are attracting a great deal of attention and capital, while transactions where either the GP or the underlying asset(s) have an issue, are a lot harder to get done.
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