Private equity secondaries investors are looking for single-asset continuation vehicles as the dry powder available for dealmaking continues its push further into record territory.
Alternative asset opportunities partner Isabel Dische discussed this trend in S&P Global, noting that "the slowdown in the M&A markets and the fact that there's not those other exit alternatives that a sponsor might have for their assets influence the attractiveness of [the secondary market]."
Isabel noted that some secondaries investors may have filled up on GP-led opportunities in 2022 and were more focused on limited partner offerings in 2023 to ensure balance in their secondaries portfolios. But there is no single story when it comes to GP-led continuation vehicles, she added, saying that investors newer to the secondaries market continue to show strong appetite for the deals.
"The growth in GP interest in these transactions continues to expand and that has continued unabated, particularly given the relative slowdown in the M&A markets," Isabel said.
Attorneys

Stay Up To Date with Ropes & Gray
Ropes & Gray attorneys provide timely analysis on legal developments, court decisions and changes in legislation and regulations.
Stay in the loop with all things Ropes & Gray, and find out more about our people, culture, initiatives and everything that’s happening.
We regularly notify our clients and contacts of significant legal developments, news, webinars and teleconferences that affect their industries.