Topics: Secondary Transactions

Three Things to Remember when Investing in Quants: an Interview with Michael Richter

Three Things to Remember when Investing in Quants: ...

High net worth individual investor and 40 year financial services veteran Michael Richter shares his insights about due diligence on quants. Three things to remember when investing in quants Operational due diligence - how does your manager segregate controls Half lives, hypotheses and what to look out for before you invest Ask these questions when getting into the black box The [...]

Setter Capital: Latest Reports Looking into the Current Secondary Market

Setter Capital: Latest Reports Looking into the ...

  Setter Capital, the independent advisory firm, published its findings on the most sought-after European large LBO managers in the second quarter. The list was topped by CVC Europe for the second year running. Furthermore, the Setter Capital report on global secondary activity during the first half of the year found private equity secondaries performing strongly, while total transactions in [...]

Lexington Partners Raises $10.1 Billion Fund to Buy Private Equity Stakes

Lexington Partners Raises $10.1 Billion Fund to Buy ...

Lexington Partners announced on Tuesday it has managed to raise $10.1 billion with its latest fund. The New York-based firm is going to spend the funds buying stakes in private equity funds and in buying private equity backed companies on the secondary market. It is another signal to show how the secondary market continues to thrive.   According to the [...]

How Much is Really Going Into Secondaries?

How Much is Really Going Into Secondaries?

Private equity firm Ardian said on Wednesday it had spent USD 4.3 billion on acquiring stakes in buyout funds since September last year, according to Reuters.  This large figure for just one fund manager in the market makes it clear that there is still some dealmaking underway.   It also shows that there is not a lot of certainty in [...]

Private Equity Industry Sees Recovery But Increasing Competition

Private Equity Industry Sees Recovery But Increasing...

It is a long slow recovery for the PE, says SEI, but rising allocations and more active Secondary Market are the bright spots. SEI’s latest study, “Key Course Adjustments for Breaking Through: Five Ways Private Equity Managers Can Optimize Their Competitive Advantage,” identified the aforementioned positive industry trends.   But it also notes “a Darwinian climate of intensifying competition” in [...]

LPs Seek New Approaches to Achieving Returns in PE

LPs Seek New Approaches to Achieving Returns in PE

Returns offered by private equity are attractive to pension funds, but many have been hit by the poor fund performance of some private equity funds, says efinancialnews. It has led to several new trends in PE investment as institutional investors seek less traditional approaches for achieving returns in PE. For example, they are showing appetite to diversify fund types.   [...]

Secondary Market Volume Higher Than Previously Assumed

Secondary Market Volume Higher Than Previously ...

Setter Capital, an advisor to institutional investors, recently released a new study on the secondary market for PE funds. Its Secondary Market Volume Report 2013 says that after a “strong start” to the year with USD 2.1 billion in turnover as an intermediary for secondary transactions, Setter decided to conduct a survey of all the major buyers to try to [...]

Global Warming in Secondaries Market

Global Warming in Secondaries Market

There is a good article in Institutional Investor this week on secondary deals, describing how the growing market has developed and why there are more of such deals taking place these days.   Secondary transactions, the buying and selling of pre-existing investor commitments to private equity and other alternative investment funds, have regional variations and trends in pricing which are [...]

Are Secondary Markets Here to Stay?

Are Secondary Markets Here to Stay?

Last week we reported E&Y’s extensive research on the current, apparently, high price tag for an IPO. A healthy and accessible IPO market is important for PE exits, and of course, for the growth of companies of all kinds.   This week a high profile VC investor in the US presented his view of  one answer to E&Y’s findings. In [...]

More Exits For PE Expected in 2013

More Exits For PE Expected in 2013

Amidst all the bad news about declining M&A activity and PE dealflow from around the globe, it is uplifting to read that industry insiders expect exits to increase in the coming 12 months, which has to be good news for LPs waiting for distributions and for GPs that want to raise new funds.   According to E&Y’s PE Capital Confidence [...]

Secondary Buyouts Dominate LBO Statistics

Secondary Buyouts Dominate LBO Statistics

It is not news that PE firms have been buying each other’s portfolio companies in recent times, but the degree and frequency is increasing, says TermSheet. At the moment, the most active buyers of private equity's leveraged buyout deals are other LBO funds. In the second quarter, 51% of all leveraged buyouts were bought with new debt by other PE [...]

Secondary Buyouts Boom Boost Faltering PE Market

Secondary Buyouts Boom Boost Faltering PE Market

Unquote Research. The strong secondary buyouts market in Europe does not appear to be slowing either. The latest ARLE/Unquote Barometer report says that there’s been an increase in larger deals in the second quarter, much of it a result of secondary buyout activity. But the overall trend in PE is less positive with first half dealflow totaling less than two [...]

More Secondaries in the Pipeline

More Secondaries in the Pipeline

The secondaries market continues to thrive with two more portfolios on the market, according to BusinessWeek. Lloyds and Groupama deliver further evidence of financial companies selling PE assets to free up required capital in an effort to comply with tighter regulations stemming from Europe's sovereign-debt crisis.   British government-backed Lloyds Banking Group is planning to sell a EUR 1 billion [...]

Unquote Probes Strength of Secondaries Boom

Unquote Probes Strength of Secondaries Boom

How long will the secondaries market thrive? Unquote published its answer, stating that the secondary PE market thrives on “every macroeconomic hit that slows the primary market down”.   To the degree the European primary market has been slowing down lately, the secondary market has picked up the slack, and then some, say unquote. It recorded eight secondary buyouts in [...]

Swiss Secondary Player Sees Steady Dealflow in 2012

Swiss Secondary Player Sees Steady Dealflow in 2012

Baar, Switzerland-based secondary investor, Montana Capital Partners (mcp), says in its latest market update that prospects are looking good this year for investors in secondary buyouts. It is not the only one saying that. The Deal in a commentary says that secondary transactions are now more acceptable than ever, while the FT reports that the secondary market hit a landmark [...]