The strong growth in the secondary market for private equity and, to a lesser extent, real estate funds is an area where there the provision of independent advice can add significant value to both sides of a transaction, typically through introducing sellers of limited partnership interests to a wider range of non-traditional/dedicated secondary buyers, including primary fund investors, and assisting in pricing and structuring negotiations.
The secondary market also encompasses complex “synthetic” secondaries, more commonly known as “secondary directs”, whereby a diversified portfolio of direct holdings in a number of privately held companies owned either by a private equity fund, hedge fund or a corporate group are packaged up and sold to a fund manager backed by secondary funds and other financial investors. We have successfully helped execute a number of such transactions, putting together sellers, funders and specialist managers of secondary assets.
Given the mix of skills and track record of Lancea, we are well equipped to act for buyers, sellers or management teams on a wide range of secondary transactions and are well known to the major secondary players. This includes sourcing of buyers/sellers, advice on valuation and market pricing, negotiation, due diligence and process.
An in-depth working knowledge of the secondary markets is also an advantage in the context of a primary fundraising, from identifying “staple” transactions to creating more comprehensive fundraising solutions.