Transaction volumes in the private equity secondary market were strong in 2020 and the outlook for 2021 continues to look robust. This report outlines the dominance of GP-led deals in the space also identifying the growing appetite for transactions led by LPs. It highlights the key considerations GPs need to keep in mind when looking to restructure a fund. The report also underscores the rising complexity in the secondaries market, noting the need for deep expertise and thorough due diligence.
The 'Secondaries in Focus 2021' special report comprises two separate articles listed below, these can be read individually or as a sequence.
By A Paris – The shock of the Covid-19 pandemic led to a significant increase in GP-led deals across the private equity secondary market as managers sought to provide investors with liquidity as funds expired.
By Fred Lee, Revelation Partners – Transactions led by GPs, including GP-led restructurings, are used as a tool for efficient fund management, benefiting both GPs and LPs. The volume of GP-led transactions has grown alongside volume in the broader secondary market. In 2020, GP-led deals accounted for USD26 billion of deal volume – more than 40 percent of total secondary activity.