News & Analysis

Opinions vary over whether the asset class will outstrip 2024’s record-breaking deal volume total, or whether recent uncertainty will cause it to miss the mark.

In the latest episode of the Second Thoughts podcast, two early pioneers in credit secondaries share their views on where the market is headed next.

Managers will seek to tap the secondaries market to keep hold of their prized assets while M&A remains muted – however, the single-asset space remains significantly undercapitalised.

The denominator effect will resurface in 2025, motivating LPs to sell into the secondaries market for active portfolio management, according to a report from PJT.

While the exact size of the portfolio is unclear, Secondaries Investor understands the portfolio could range around the $5bn and $6bn mark.

Secondaries investors are ‘adding the equity risk premium for all the unknowns’ and breaking down deals into smaller bites to better manage risks.

As traditional exits remain sluggish this year, GPs are getting creative in finding ways to deliver liquidity to limited partners in older funds.

The joint venture is structured as a RAIF and will look to acquire mainly senior-secured direct lending stakes.

Navis Capital Partners has moved some of its holdings in a portfolio of Southeast Asian education assets into a $230m continuation fund.

The university will continue to actively seek new relationships with PE firms, a spokesperson told Secondaries Investor.