Commentary

Potential growth in the sector is hard to predict and will be driven by the ability of participants to keep devising new solutions, writes Daniel Roddick of Ely Place Partners.

Tan Pawar and Harry Leitch from global specialist broker BMS discuss the rise of warranty and indemnity insurance in single-asset and concentrated GP-led deals and how it’s being used.

May sees the publication of our surveys of secondaries advisors and legal activities in 2020. Here are some early findings.

A clear rationale and early engagement with LPs can help overcome the complexities involved in GP-leds, say Akin Gump Strauss Hauer & Feld partners Aleks Bakic, Fadi Samman and Daniel Quinn.

The traditional 10-year fund life hasn’t changed but GPs want to hold assets for longer. That’s where secondaries come in, says the firm’s Barry Miller.

If 2020 was the year of the generalist mega-fund, this year is showing size is no obstacle in today’s market.

There is an art to managing the contrasting cashflow profiles of traditional LP and GP-led secondaries, says Charles Smith, chief investment officer and managing partner at secondaries firm Glendower Capital.

Costs have remained stable in the secondaries market, and using data to price portfolios could make them cheaper, writes RockSling Analytics’ Harry Vander Elst.

GPs are no longer spectators in secondaries transactions, which provides opportunities for investors, says Christiaan van der Kam, head of secondaries at the firm.

Inheriting an indirect property business when that market is dominated by recapitalisation deals brings further conflict challenges that must be reconciled.