Success in Secondaries

The private equity market will be profoundly affected by the huge supply of unexited portfolio companies, and secondaries strategies will increasingly play a role in providing badly needed liquidity, according to Ian Charles, a Partner at Landmark Partners.

In a Privcap interview, Charles describes the trends behind two high-profile fund-restructuring deals by which some LPs were taken out of mature funds managed by Willis Stein & Partner and Behrman Capital, while other LPs stayed on with revised partnership terms. Also discussed: The value “trapped in funds that are over 10 years old,” and why pricing competition means secondaries buyers must hunt for deals in misunderstood pockets of the market.