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Portfolio Strategy

The Development of Complex Secondaries

This three-part series examines the development of complex secondaries in private equity. Fundamentally, complex secondaries emerged as a function of the increasing maturity and scale of both the private equity market and the investors in that market. This growth created situations in which a traditional secondary transaction often no longer met the goals and objectives of all stakeholders.

Part One: FROM LP-LED TO GP-LED

In part one, we look at how the increasing maturity of the secondary market and growing sophistication of its participants drove the shift from traditional, limited partner-led (LP-led) transactions to general partner-led (GP-led) ones.

Part Two: SPINOUTS AND BUY-INS

In part two, we examine team spinouts and buy-ins, which first emerged in the mid-nineties as a response to corporations and financial institutions looking to move direct private assets off their books for strategic and/or regulatory reasons.

Part Three: PUBLIC MARKET TRANSACTIONS AND STRUCTURED LIQUIDITY SOLUTIONS

In part three, we look at highly complex deals such as public market transactions and structured liquidity solutions. Executing these deal types requires differentiated expertise, as each must be tailored to the precise assets involved and the specific needs of the seller.