Episodes
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It's common to peel back the onion on key events and trends seen across financial markets. As the secondaries market heads for what is predicted to be a record-setting year for volume, we decided to practice the phrase quite literally.
Madeleine Farman, senior reporter and host of the Second Thoughts, and senior editor Adam Le are joined by Carlo Pirzio-Biroli, head of CVC Secondary Partners, and Ted Cardos, co-head of Kirkland & Ellis's European liquidity solutions team, with the group letting a basket of onions decide the talking points.
Pirzio-Biroli and Cardos discuss key wins, disappointments and developments over the course of 2024 and what the next 12 months could bring for the secondaries market.
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The opportunity set for the tail-end secondaries market has grown from $198 billion 10 years ago to $916 billion today, according to estimates from legacy specialist Hollyport Capital.
In this episode, John Carter, managing partner and chief executive of Hollyport, and Etienne Deshormes, managing partner and CEO of private markets adviser Elm Capital, join senior reporter Madeleine Farman for a discussion on the topic.
The three discuss the structural drivers of the tail-end secondaries market, how to approach due diligence in this part of the market, which institutions are more likely to sell a tail-end secondaries portfolio, whether new entrants will enter into this space, and the long-term outlook for this growing segment of the secondaries market.
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The lack of human capital has become one of the biggest challenges in the secondaries industry – a situation that could change as the sector gains appeal among young professionals.
In this episode of Secondaries Investor's Second Thoughts podcast, we're joined by three young achievers who made it on the NextGen Leaders of Secondaries: Class of 2024 list, which features the most impressive secondaries professionals aged under 36. This year, we saw the highest number of submissions in the ranking’s history with almost 400 nominations.
Our guests include Sijia Cai, partner at Davis Polk & Wardwell; Sabrina Harliman, vice president at TPG; and Josef Menasche, co-head of secondaries advisory at Goldman Sachs. They discuss current talent trends and how they think the secondaries market will evolve in the future.
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Second Thoughts host Madeleine Farman and America's correspondent Hannah Zhang sit down to discuss the latest volume, fundraising and performance data coming through on the secondaries market and talk through the spaces to watch as activity surges towards the end of the year.
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Do you work collaboratively with potential partners to help shape a deal, or do you have a set notion of what type of transaction you want to be a part of from the outset? Is EQ as important to you as IQ? How big a role does ego play in preventing deals from being consummated?
In part two of our discussion with AlpInvest Partners managing director Louis Choy, PJT Partners‘ European head of private capital solutions Johanna Lottmann and law firm Stephenson Harwood partner and head of private funds Sarah de Ste Croix, we examine these questions and more.
Find out what separates GP-leds 1.0 from 2.0, how the market got to this point, and listen until the end to hear a few light-hearted anecdotes from participants.
If you missed part one of the discussion, listen here.
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A secondaries buyer, adviser and lawyer walk into a room. This isn't the start of a bad joke – it's the culmination of an idea Secondaries Investor had after moderating a panel at an alternatives conference with AlpInvest Partners managing director Louis Choy, PJT Partners' European head of private capital solutions Johanna Lottmann and law firm Stephenson Harwood partner and head of private funds Sarah de Ste Croix. Over drinks at a nearby pub, the idea was born to record a podcast providing a 360-degree view of the latest trends in the market, as seen by representatives of the three main constituent groups.
In Part 1 of our group discussion, hosted by senior editor Adam Le, the trio share their thoughts on the legal, financial and commercial benefits of leading a deal. They discuss the ways secondaries participants are coming up with creative ways to name deal leads in transaction documents; why syndicate capital is just as important as lead buyer capital; and how this definition may evolve.
To hear more of our episodes, head to secondariesinvestor.com/podcast or you can search and subscribe to the new Secondaries Investor's Second Thoughts dedicated channel wherever you like to listen.
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While many private markets firms are working to leverage generative AI, secondaries investment firm Clipway has put the technology front and centre of its strategy.
The London-headquartered firm counts secondaries veterans Ingmar Vallano, Vincent Gombault and Benoît Verbrugghe and others among its senior investment team. All worked at secondaries giant Ardian.
Since its inception last year, Clipway says it has reviewed close to $54 billion of potential opportunities and has built up an exposure to close to 150 GPs, which is a combination of the firm’s primary and secondaries activities. It says its generative artificial intelligence and machine learning system TESS allows the firm to conduct analysis of portfolios of underlying companies' data.
In this episode, senior reporter Madeleine Farman sits down with managing partner Ingmar Vallano to discuss the benefits Clipway sees in putting generative AI at the heart of its process, the opportunities it sees for investments and the benefits generative AI could bring to private markets.
To hear more of our episodes, head to secondariesinvestor.com/podcast or you can search and subscribe to Secondaries Investor's Second Thoughts wherever you like to listen.
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This episode first aired on September 5, 2024
The top 50 secondaries investors globally raised $473.8 billion in the five years to the end of 2023, according to this year’s SI 50. That’s a 9 percent increase on last year’s ranking, when $434.5 billion was recorded across a longer counting period of five-and-a-half years.
Ardian took the top spot, raising $49.6 billion across the period, followed closely by Blackstone Strategic Partners, which raked in $49.5 billion. Lexington Partners, which holds the record for the largest secondaries fund ever raised, accumulated $36.7 billion in commitments, coming in at number three.
Specialisation is driving much of this underlying growth – whether that be through asset class expansion, strategies focused down on LP-leds or GP-led deals, or picking a focus on a market segment with less secondary competition. Evergreen vehicles are also spurring on new avenues for secondaries capital raising.
In this episode of Second Thoughts, senior reporter Madeleine Farman and Americas correspondent Hannah Zhang discuss how far these factors have driven growth in the SI 50 and how much room there is to grow further.
See the full SI 50 ranking here
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This episode first aired on September 23, 2024 and is sponsored by Kirkland & Ellis, LGT Capital Partners and TPG NewQuest
The Asia-Pacific secondaries market is one of the most fascinating corners of the global secondaries landscape. This region typically never accounts for more than single-digit figures in terms of global deal volume share – yet some of the most innovative transactions have come out of the APAC market over the years.
In this episode of our Decade of Secondaries Investing miniseries, we sit down with Brooke Zhou, partner at LGT Capital Partners; Michelle Cheh, partner at Kirkland & Ellis; and Darren Massara, managing partner at TPG NewQuest, to discuss what types of deals have happened over the last 10 years in the Asia-Pacific region.
We explore Renminbi-to-US dollar restructurings and why these have taken a back seat in 2024; why valuations are a more complex issue when it comes to Asia-Pacific GPs than their global counterparts; the different drivers of dealflow in the various markets in APAC and what types of opportunities these are bringing about; and why the regulations affecting GP-led secondaries deals in the US and western Europe have had little impact on APAC secondaries transactions.
For full coverage of our Decade of Secondaries Investing series, including all podcast episodes and an interactive timeline, click here.
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This episode originally aired on July 8, 2024 and is sponsored by UBS Asset Management and Proskauer Rose
The global secondaries market has grown from roughly $47 billion in 2014 to more than $100 billion today. In Europe, fragmentation has led to some significant regional differences. However, it is also clear that many of the trends and dynamics found in the European market are the same as in North America – indeed, some of these developments occurred there first.
In the penultimate episode of the Decade of Secondaries Investing podcast miniseries, we sit down with Jochen Mende, an executive director responsible for secondaries transactions at UBS Asset Management, and Bruno Bertrand-Delfau, partner and co-head of secondaries transactions and liquidity solutions at Proskauer Rose.
The pair discuss how the European secondaries market has developed over the past decade, how it compares with the North American market and what’s in store for GP-led and LP-led transactions globally.
For full coverage of our Decade of Secondaries Investing series, including all podcast episodes and an interactive timeline, click here.
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This episode first aired on June 3, 2024
The private equity industry has been pushing for more gender equality among GPs, LPs and intermediaries over the past decade, and the trend is now taking hold in the secondaries market, where diversity issues have historically received less attention.
In recent years, women across secondaries have been advocating for empowerment movements and forming support groups, including the Women in Secondaries network launched by Coller Capital and Akin Gump in 2020, as well as the WINS initiative backed in 2021 by five industry professionals representing the buyside, advisory, lending and legal sectors.
For those who have made it to senior roles, the priority is to retain, promote and elevate other women. In this eighth episode of the Decade of Secondaries Investing miniseries, Americas correspondent Hannah Zhang sits down with two women pioneers to discuss how the secondaries industry can promote gender equality. They are Francesca Paveri, senior managing director at investment bank Evercore, and Tori Buffery, senior director of secondaries at Nicola Wealth and senior adviser at Morningside Capital.
For full coverage of our Decade of Secondaries Investing series, including all podcast episodes and an interactive timeline, click here.
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This episode first aired on May 29, 2024
Specialised secondaries strategies are becoming an increasingly important part of the market. According to data complied by Secondaries Investor, 85 percent of the capital raised by secondaries funds in final closes last year was for private equity strategies; the remainder of this was for non-PE strategies, and the year before that more than one-third of capital raised was for non-PE strategies.
There is also increasing specialisation within private equity secondaries, as firms including Lexington Partners, Strategic Partners, AlpInvest Partners and LGT Capital Partners carve out teams to focus on single-asset continuation funds.
In episode seven of the Decade of Secondaries Investing miniseries, senior editor Adam Le sits down with Jeremy Coller, chief investment officer and managing partner at Coller Capital, and Yann Robard, managing partner at Dawson Partners, to discuss how far the asset class has come in terms of specialisation and cross-asset-class appeal.
For full coverage of our Decade of Secondaries Investing series, including all podcast episodes and an interactive timeline, click here.Listen: "Everything you wanted to know about preferred equity" -
This episode first aired on May 22, 2024
Post-global financial crisis, many institutional investors were forced sellers, offloading private markets exposure at hefty discounts. More than a decade on, these same institutional investors have become repeat sellers on the secondaries market, using the tool as a way to proactively manage their portfolios. How has LP sentiment toward the secondaries market changed, and what is the outlook for this mainstay of the sub-sector?
In this sixth episode of the Decade of Secondaries Investing miniseries, Secondaries Investor senior reporter Madeleine Farman sits down with Jeffrey Keay, managing director at HarbourVest Partners, and Adrian Millan, partner at PJT Park Hill. Keay and Millan take a deep dive into LP portfolio management and look at how institutional investors are using secondaries as a tool to manage private markets exposure.
We look into the evolution of programmatic secondaries sales and explore the drivers and dynamics behind why some institutional investors are repeat sellers of private markets exposure.
For full coverage of our Decade of Secondaries Investing series, including all podcast episodes and an interactive timeline, click hereRead: "Liquidity the primary use case for GPs looking to enter secondaries processes – PJT"Read: "Evercore: distressed sellers 1% of 2013 market volume" -
This episode first aired on May 13, 2024
The US Securities and Exchange Commission’s recently passed rules relating to the GP-led secondaries market have put these deals squarely on LPs’ radars.
“[These rules] raise the visibility of GP-led transactions to LPs and they signal how important and risky those transactions might be,” Igor Rozenblit – managing partner and founder of governance, risk and regulatory services provider Iron Road Partners and the former private equity expert in the Division of Enforcement of the SEC – told Secondaries Investor.
“I wouldn't be surprised for LPs who have already focused on these transactions to focus on them even more… While all the other risks the LPs have always worried about are present, now you've got an additional regulatory risk as an LP that you have to worry about, and LPs are typically very concerned with their exposure to headline risk."
In this fifth episode of the Decade of Secondaries Investing podcast miniseries, we sit down with Rozenblit and Isabel Dische, chair of Ropes & Gray’s alternative asset opportunities group, to discuss the secondaries aspects of the private fund advisers rules under the Investment Advisers Act of 1940 and Form PF rules.
The pair discuss the evolution of the SEC’s focus on this small sub-asset class within the sprawling private markets landscape, what the regulator is looking out for in these transactions, and how GPs, buyers and advisers can navigate best practice as well as reputational risk that could come with these deals.
For full coverage of our Decade of Secondaries Investing series, including all podcast episodes and an interactive timeline, click here.Read: "SEC votes through rules on GP-led secondaries reporting timeline"Read: "Rubber stamp speeds up market standardisation"Read: "The VSS case and the path toward best practice"Read: "Iron Road Partners: Analyst note on American Infrastructure Funds SEC charge" -
This episode first aired on May 7, 2024 and is sponsored by Ares Management, Dawson Partners and Proskauer Rose
The North American secondaries market remains the deepest and most active area for secondaries trading of all the global regions. Around $114 billion-worth of alternatives exposure changed hands last year and North America accounted for around two-thirds of global secondaries trading.
In this fourth episode of the Decade of Secondaries Investing miniseries, we sit down with Eddie Keith, a partner and head of infrastructure secondaries in the Ares Secondaries Group; Chris Robinson, partner in the private funds group at Proskauer Rose and co-head of the firm’s secondary transactions and liquidity solutions practice; and Yann Robard, founder and managing partner at Dawson Partners, which recently rebranded from Whitehorse Liquidity Partners.
The trio discuss how the North American secondaries market got where it is today, and what’s next for this crucial region.
For full coverage of our Decade of Secondaries Investing series, including all podcast episodes and an interactive timeline, click here.
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This episode first aired on April 29, 2024
Single-asset continuation funds have surged in popularity in recent years. While the technology isn't new, it took persistence from secondaries market advisers to show both private equity managers and buyers that vehicles associated with the moniker 'zombie funds' could be used to keep hold of star-performing assets.
Last year, single-asset continuation fund vehicles took out the largest share of GP-led transactions, accounting for around 39 percent of the $48 billion of volume seen in this part of the market, according to a year-end report from Lazard.
There was "some reluctance" from secondaries buyers when conversations around single-asset continuation fund transactions began, Harold Hope, global head of secondaries at Goldman Sachs Asset Management, told Secondaries Investor. "We traditionally bought portfolios. Sometimes they were concentrated portfolios, but they were always portfolios."
Today, these vehicles allow Goldman Sachs "to mitigate some of the broader risk that we face when we buy a diversified portfolio," Hope said, adding that the team is "excited about the opportunities" globally.
In this third episode of the Decade of Secondaries Investing podcast miniseries to celebrate the 10 years since Secondaries Investor launched, we sit down with Hope and Holcombe Green, global head of Lazard’s private capital advisory business. They discuss how continuation fund technology was developed over time to facilitate single-asset continuation funds, and how large this pocket of the market could become as more capital is allocated to the area.
For full coverage of our Decade of Secondaries Investing series, including all podcast episodes and an interactive timeline, click here.
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This episode first aired on April 22, 2024
What's in a name? The process of moving an asset or assets from an existing private markets fund into a separate structure has been happening for some time now – some say as early as 2006 and possibly even prior to that.
The so-called 'continuation fund' market was worth around $40 billion last year, according to advisory estimates. Yet, this market was not always seen as a positive and constructive tool with which fund sponsors could deliver liquidity, via an option, while retaining their hold over prized assets.
In the second episode of the Decade of Secondaries Investing miniseries to celebrate the 10 years since Secondaries Investor launched, we sit down with Nigel Dawn, head of private capital advisory at investment bank Evercore, and Verdun Perry, global head of Blackstone's Strategic Partners group, to discuss the evolution of the continuation fund market over the past decade and what's in store for how this tool will continue to be used.
For full coverage of our Decade of Secondaries Investing series, including all podcast episodes and an interactive timeline, click here.See the PEI 300 here.Read "Single-asset CVs offer steadier returns than buyout funds – EvercoreRead "How do continuation funds really perform?"Read "More LPs seek to back secondaries funds" -
This episode originally aired on April 15, 2024
A decade ago, in the aftermath of the global financial crisis, anxiety around unknowns was still rippling through financial markets, including within secondaries. Similarly, there was a great deal of concern around the Volcker Rule that came into effect in 2014, which essentially prohibited banks from investing in private equity with their own funds.
In 2013, secondaries volume sat at around $28 billion. The following year, volume leapt to $42 billion. While regulation should not be overplayed, the Volcker Rule and Solvency II – a regulation affecting insurance companies and the percentage of risky assets they can hold on their balance sheets – played a big role in this increase.
In 2014, "There was suddenly... a lot more publicity being given to what people had been doing," Katherine Ashton, partner at Debevoise & Plimpton, explained. "With the increased publicity, with the increased knowledge of the market, that fed on itself and led to outdoing some of the predictions [for the growth of the market] because the more people realised that there were willing buyers and sellers, the more it allowed the market to develop."
Welcome to the Decade of Secondaries Investing miniseries, where we celebrate 10 years of Secondaries Investor with reflections on key trends that have shaped the market, as well as a glimpse into what likely lies ahead. In this first episode, we sit down with Ashton as well as Michael Granoff, chief executive and founder at Pomona Capital. Each give insight into how the Volcker Rule and other post-GFC legislative frameworks spurred secondaries sales.
For full coverage of our Decade of Secondaries Investing series, including all podcast episodes and an interactive timeline, click here.
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This episode originally aired on March 26, 2024
In this episode, Secondaries Investor's Madeleine Farman, Adam Le and Hannah Zhang cut through the headline figures in 2023's advisory reports to break down geographic trends and key themes in the market.
Total deal volume sat somewhere in the region of $109 billion to $115 billion in 2023 with LP-led volume making up $56 billion to $66 billion.
Farman, Le and Zhang delve into topics including APAC secondaries market activity, structured liquidity offerings such as NAV loans, preferred equity and GP commit financing, and the popularity of multi-asset continuation funds as managers seek to find ways to generate DPI for LPs.
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This episode originally aired on January 2, 2024
In this episode, Ardian's co-head of secondaries and primaries Vladimir Colas makes a bold prediction for the secondaries market: the first private equity fundraise to breach the $30 billion mark will be a secondaries vehicle.
LP portfolios being brought to market are only growing in size, and if they could, sellers would be offloading even larger portfolios. However, secondaries activity is still constrained by the amount of capital available to deploy into these transactions.
Colas sat down with senior reporter Madeleine Farman to discuss how large the secondaries market could become in the near future, as well as how many new entrants Ardian expects to break into the secondaries market in 2024 and beyond.
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