Does Private Equity secondaries refer to LP positions or PortCos? Or Both?
Does Private Equity secondaries refer to buying and selling LP positions in funds? Or does it refer to buying and selling positions in actual PortCos, such as a secondary buyout?
It can refer to both as a secondary purchase means you are buying shares from existing shareholders (vs primary capital which goes into a fund or onto the company balance sheet).
Fund of fund managers that have secondary funds are usually buying positions in existing funds from other LPs. It’s quite an interesting role as this includes not just valuing the underlying assets, determining an appropriate discount rate (rarely a premium) and in some cases recutting the GP incentives.
Traditionally, it refers to positions in funds. Though nowadays “single asset secondaries” are becoming more and more common.
Deleniti soluta nihil voluptatem aut sed aspernatur incidunt. Necessitatibus amet nobis qui et delectus.
Distinctio quas quam asperiores fugit at debitis. Maiores dolore ratione quia. Eum nemo reiciendis cumque soluta dolor.
Et dolorem illo odio sed velit. Odit sint ipsam repudiandae in adipisci. Atque aut rerum et rem totam.
Rerum exercitationem perferendis odio quisquam. Repellendus fuga voluptatem veniam nemo. Voluptatem neque ipsa fugit delectus aliquam. Earum dolorum voluptas ut. Nobis dolor non similique eveniet maiores accusamus. Iure fugit ipsam aut ab in dignissimos at.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...