LANCEA is well equipped to act for buyers, sellers and the fund manager itself in relation to existing private fund interests
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The strong growth in the secondary market for private funds, in particular private equity but increasingly across the asset classes, is an area where the provision of independent advice can add significant value to all sides of a transaction. This involves introducing sellers of limited partnership interests to traditional secondary investors as well as a wide range of non-traditional secondary buyers and assisting in pricing, due diligence and structuring negotiations.
Secondary transactions encompass a wide range of situations. Complex "GP/Manager restructurings" using secondary market funding solutions have become more common, for which dedicated advisory experience and in depth knowledge of secondary markets and players is required.
Another market variation are "secondary directs", where 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.
An in-depth working knowledge of the secondary markets has also become a key tool in the context of a primary fundraising, including the creation of "staple" transactions and other secondary influenced fundraising solutions.
LANCEA works with all types of investors, fund interests, fund assets and investment strategies, ranging from mature buyout funds through to younger venture funds. The key aim is to enable sellers and purchasers satisfy their respective objectives through the designing of creative solutions.