GS Vintage Fund V
GS just closed what is currently the largest PE secondaries fund in the world. In the following article John Morris of HarborVest purports the most activity in the PE community is on the secondary-side (at least in terms of the volume of prospective transactions and funds raised). What are your thoughts with respect to opportunities on the secondary side and what implications will the churn in LPs have on the autonomy of GPs? Will unconventional players enter this market, e.g. HFs, PE firms? I mean, if some funds have fully deployed / partially deployed their capital and are trading at discounts of 50-80%, surely the market will be populated with more buyers going forward?
Here's the link: http://www.bloomberg.com/apps/news?pid=newsarchiv….
Yea I saw a similar article in yesterday morning's WSJ, it seems like theirs money to be made by buying commitments off LPs. The interesting thing in the second case you mentioned with a GP who's only partially called their commitments, the new investor (the fund who buys the commitment away from the original LP) would still have to meet all future capital calls so the discounts can be somewhat misleading as not all of the $ is drawn down yet.
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