Secondaries v2.0:The Era of Transformation

Transformational secondaries, particularly transactions involving single assets, are compelling because we believe they can potentially provide key benefits beyond those typically associated with traditional limited partner (“LP”) secondaries. In addition to providing a shorter duration, mitigated blind pool risk and purchase price discounts, transformational secondaries seek to maximize the value of unrealized assets by providing opportunistic growth capital, additional time and enhanced alignment with the GP.

Single-asset transactions with high quality GPs, in our view, enable the secondary market investor to more effectively leverage the GP’s intimate knowledge of the underlying asset, to collaborate with the GP in enhancing the value of the asset in its next phase of value creation and to negotiate deal terms that closely align the interests of the GP and the investor. Outside of transformational secondaries, we believe that it is difficult to find transactions with this combination of potential benefits in the secondary markets today.