Guest Commentary

PE’s dreaded denominator effect could prompt some tough decisions

A simultaneous numerator, denominator effect may leave some LPs significantly overallocated at a time when their GPs are asking for re-ups.

Terms maker or terms taker?

While there are advantages to using an M&A process to set the price of a GP-led deal, buyers should not wear the technology out.

The LP burden of GP-led deals

While secondaries activity shows no signs of slowing, LPs and GPs need to get on the same page about how to smooth out this process for institutional investors going forward.

Less secondaries capital, more widely spread

Secondaries fundraising figures for 2021 came in more than $35bn shy of the prior year, but they were more impressive than they seem.

We need to talk about accounting

LPs should be aware that buyers often mark up assets to par on day one, even if they are acquired at a discount.

Secondaries market seeks family fortunes

Family offices continue to make up a small percentage of sellers in the secondaries market, though the GP-led market is forcing them to think about their portfolios in a new way.

Women in Private Markets Summit – who said what about secondaries?

The subject of secondaries came up frequently at PEI’s Women in Private Markets Summit, held in the first week of December. Here are some of the issues that are top of mind.

Single assets are more versatile than many think

The lack of broader acceptance from LPs is preventing buyers from fully tapping the single-asset market.

Kirkland & Ellis advisory panel – key takeaways

Five advisory heavyweights discussed the state of the secondaries market at an event held by the law firm this month in New York. Here’s what they said.

Double-down funds: GP-leds without the secondaries

Double-down funds don’t pose an immediate threat to the continuation fund market, but they are a reminder of the need for secondaries funds to justify their fees.