Brett Johnson

Endowments and foundations using outsourced investment offices increasingly view GP-led secondaries as a way to deploy capital more quickly into private markets, prioritising performance opportunities over liquidity concerns.

Even though some return mechanisms secondaries buyers have historically looked to are less attractive in today's market, the OCIO firm is encouraging its clients to participate in the growing secondaries market both as a buyer and to reshape its programmes as a seller.

Secondaries has become a popular portfolio management tool for large US endowments like Yale and Harvard.

LACERS CIO Rodney June: ‘The opportunity set has grown’ in private equity secondaries market as $26bn pension eyes potential participation.

The $3bn University of Nebraska Foundation sees ‘some value’ as a buyer in syndicated portfolio sales comprising 50 fund stakes, according to CIO Brian Neale.

CIO of $6bn Midwest pension would prefer the system remain 'more of a buyer than a seller' when it comes to private equity funds.

With peers facing substantial portfolio challenges, the $30bn endowment is urging restraint in what its leaders say is an environment for endowments akin to 2008’s financial crisis.