NAV loans for LP distributions were a hot topic – some might say even a spicy one – at an industry gathering in Paris this week.
Instead of a flood of LPs backing away from the asset class, there appears to be some tactical manoeuvring to help institutional portfolios stay in balance.
Our upcoming special report on the secondaries market shows the future looks bright for this burgeoning asset class – though investors have a list of improvements they’d like to see.
As GP staking firms come up with novel ways to provide exits to investors, the burden will be on them to show such efforts are worth it in the long run.
Despite a couple of pulled-transaction anomalies, secondaries sales are still seen as a powerful tool for rebalancing portfolios.
Elevated interest rates and an evolving value creation playbook is causing some investors to question whether managers can replicate their past performance.
While it’s easy to point to liquidity constraints as an anomaly, the market believes secondaries’ record-breaking streak should continue.
An uptick in the number of funds closing above target belies the fundraising challenges facing a swathe of the industry.
Research from Rede Partners shows green shoots are beginning to appear when it comes to realisations and investor confidence.
A recent report shows GPs may have developed tricks to downplay the underperformance of some assets, resurrecting the question of how much wiggle room is needed in valuation processes.