Amy Carroll
Money continues to flow into this most undercapitalised corner of private equity.
Despite a record year for fundraising, growth in the secondaries market has been hampered by a lack of liquid capital.
Early adopters of the technology are exploring where the greatest benefits lie for private equity, but secure and responsible protocols remain key.
Early engagement and regular communication with LPs are vital to avoiding roadblocks in the GP-led secondaries process.
Muted M&A activity and liquidity demands are prompting more sponsors to consider moving assets into continuation funds, but successfully completing a GP-led deal is more easily said than done.
As supply continues to outstrip demand, it is ever more important to clearly demonstrate why particular assets are well suited to a continuation fund process.
Appointing an internal team to oversee a GP-led deal, and working with advisory and legal partners early, can help smooth what can be a time- and resource-intensive process.
Sponsors and management teams need to demonstrate their commitment to the next phase of growth.
Sponsors and management teams need to demonstrate their commitment to the next phase of growth.
Even with the best laid plans, GP-led processes can become delayed, but there are steps sponsors can take to mitigate common holdups.