Issues to be addressed in this research paper

In November 2016 we wrote a paper highlighting the opportunities in secondaries. At the time the space was starting to grow, with transaction volume of $40 billion in secondaries the year prior. Then, the majority – approximately 80%, or $32 billion – involved limited partners (LPs) selling their fund interest. The balance was made up of transactions generated by general partners (GPs) through spin-outs, restructurings etc.

Six years have passed. The market has grown, and changed, rather significantly. Secondary transaction volume reached an all-time high of $133 billion in 2021 and, unlike 2015, the majority of transaction volume is now accounted for by GPs rather than LPs. Given these developments, we have reviewed the secondaries space, looking at how the landscape has changed and determining whether secondaries can still provide good investment opportunities today.