Limited Partners

There’s an interesting dynamic playing out in the secondaries market that suggests LPs’ thinking about how to manage their portfolios is evolving.

Tikehau Capital subsidiary Opale Capital this week said it would offer AlpInvest, Goldman Sachs and HarbourVest’s secondaries products to non-institutional investors.

The firm has been running a process this year on its seventh and eighth funds at a time when many LPs are reluctant to sell amid lower pricing.

Private Equity Opportunities III closed on $738m and includes $100m for new commitments.

The portion of LPs looking to back secondaries funds is only increasing as investors seek ways to turn negatives into positives in the current crunch.

Fewer investors are using the secondaries market to lock in returns or to refocus their portfolios on the best-performing managers, compared with six months ago.

The trade group has issued guidance to address concerns over conflicts and the speed of GP-led deals.

LP sales were expected to kick off a resumption of robust secondaries activity after a slowdown late last year, with external factors such as the collapse of Silicon Valley Bank keeping activity muted.

The Institutional Limited Partners Association chief executive questions whether the industry is equipped to serve a more demanding clientele.

Presenting the second instalment of Second Thoughts, a special series from Secondaries Investor that delves into the latest trends affecting the fastest-growing market in alternatives.