GP-Led Secondary Deals Are A New Way To Achieve Liquidity
By Michael Hong (October 18, 2017, 9:38 AM EDT) -- With several headline-grabbing general partner-led secondary transactions, 2017 has witnessed the maturation of a relatively new feature in the private equity industry's liquidity tool kit. This past summer, Lexington Partners purchased limited partner interests from investors in BC Partners' ninth flagship buyout fund, while committing new capital to the fund's successor. Structured as a tender offer, the transaction value was reported to be around $1 billion. Meanwhile, Warburg Pincus announced that it engaged Lazard to consider a secondary transaction to facilitate the sale of up to $1 billion of Asian assets from its relatively recent 2013 vintage private equity fund. Partners Group was announced as the buyer in a stapled transaction involving EQT's 2011 flagship buyout fund and its latest Asia fund. The list goes on....
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