Limited Partners

The teachers’ pension portfolio is among several that have moved through the market this year, helping to drive secondaries volume even as activity on the GP-led side of the market remained muted.

The transaction marks the fourth transaction from ICG LP Secondaries Fund I, Secondaries Investor understands.

Market volatility may have increased denominator effect concerns in recent months but infrastructure allocations are still trailing targets.

With sluggish fundraising and GPs often desperate for capital, LPs are in a stronger position to demand certain concessions that may have been unworkable in the bull market years.

LPs are facing a difficult choice as they balance liquidity challenges with the deep discounts on offer in the secondaries market.

Generative artificial intelligence is being applied to private markets at breakneck speed. The biggest hurdle to applying these software tools to LP secondaries trades is the market’s lack of standardisation.

Permodalan Nasional Berhad has historically allocated more to secondaries due to increased liquidity needs, according to Rick Ramli, chief investment officer for private and strategic investments.

The survey, which compiled responses from 101 senior buyout, growth, private debt, VC, real estate and infrastructure executives globally, found that most GPs observed their LPs had interest in such options.

There were 15 $1bn-plus LP-led portfolios brought to market in the first half of 2023, and market participants anticipate more LPs will follow suit. How many transactions will get over the line?

The process is an example of the kind of challenges faced by secondaries participants, with pricing discrepancies continuing to prevent sales from making it to final close.