When the music stops: Be ready

November 1, 2021
Ian Lane joined Private Equity International for a roundtable discussion on co-investing trends in today’s market.

Ian Lane, managing director at HarbourVest Partners, adds: “Private firms have substantial dry powder to invest, while public market companies have high stock prices and large balance sheets they can utilise for M&A. At the same time, high valuations present a compelling opportunity to sell assets. We are seeing all of the historic drivers for deal activity in play in the current environment.”

The advantages of co-investment are clear. These deals provide the opportunity to tailor a bespoke portfolio, at reduced economics, and so the return prospects are compelling.

Read the full roundtable interview from Private Equity International here.

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Continuation solutions encompass a host of transaction types in which a GP secures interim liquidity and/or additional primary capital for their LPs in a strongly performing asset, or set of assets, that the GP will continue to own and control. Specifically, they include continuation funds, new funds created by GPs for the purpose of acquiring the asset(s) that continue to be managed by the same GP and capitalized by one or several secondary buyers, or equity recapitalizations involving a direct equity or structured equity investment into a portfolio company. These transactions can also include a parallel investment from the GP’s latest fund into that same pool of assets (a “cross-fund trade”).