secondary market

“Anytime you look at the secondary markets to do a sale, what you're offered for these old stubs is such a large discount that it's not worth doing that. So we'll let this pretty meaningfully big number of small stubs stay in the portfolio and let it run off.”

“One of the few markets that's still inefficient is the secondary market and privates, relative to how capital flows, et cetera.”

“We've sold assets in the secondary market three times in the last eight years because we thought there was a, at least a temporary premium attached to certain assets, and in particular to a collection, to a portfolio of assets that could be aggressively levere…”

“The downside of secondaries is you can't always be so precise the way you can on primaries or co-investments around picking your portfolio construction, X percent Europe, Y percent venture. The founder of the secondary business used to say, you can only buy wh…”

“And for 20 years, it was largely a distressed seller market. For the most part, the secondary market existed only because An owner of a limited partnership interest decided it didn't want to own that asset anymore. And what has changed in the last, say, five t…”

“The secondary market has picked up, and there are several groups, some of them with decent, good reputations, who will buy shares outright, and that's a simple transaction to get your head around. However, the tax implications can be pretty significant. The co…”

“You can't just sell your duds. That never works in a secondary.”

“The secondary market, the continuation fund market, the recap market, the co-investment market, those are all areas of the market with pretty sophisticated investors. That are in the business of creating returns for their investors, of which, you know, how the…”

“2021, which is a high watermark up to this point is about one 30. And I suspect we will beat that number this year.”

“These are the best GPs with their best assets, leveraging the secondary market for a number of reasons. Often it's a single company continuation. This is often their crown jewel, trophy asset, where in the past, a managing partner may have to sell their best a…”

“So it would not surprise me if the GP side of this market is 200 to two hundred and fifty billion dollars in five years time. So if you add that onto what we think is a natural growth also, In the LP market, getting to four to five hundred billion is reasonabl…”

“The secondary market is around two percent of outstanding AUM.”

“There's very, very little litigation, if any, that I've seen in the secondary market in 20 years.”

“The transactions that are less favorable to the market is where there's been a failed sell side on that company. And then, oh, that sell side failed. Why don't we do a continuation fund? Now, the market figures that out pretty quickly.”

“Traditionally, when we talked about secondaries, we would talk about limited partner secondaries. That used to be 95% of the market, and now it's probably more like 50% of the market. The other 50% has been GP-led secondaries.”

“It's interesting in the secondary market, because as big as it's gotten, there's actually not that many players that can show up with a billion dollar check to provide liquidity to a counterparty, certainly in speed and scale.”

“I'm on the record for saying that the secondary market is going to get to a trillion dollars by 2031. Whenever I say that, the first reaction is, you're crazy. And I've heard that a few times, I guess, in my career. But I have a deep conviction around this pre…”

“The secondary market has gone to one hundred and thirty five billion at its biggest year in 2021, and that represents one percent of private capital.”

“It's always good setup when you know more than the seller about the assets and when the seller has to do so for the wrong reasons.”

“Although we see in the market that Yale and Harvard are selling, this is not their first sale. It's just actually a return to them selling.”

“By 2020, about half the volume was GP-led transactions and half the volume was LP transactions. Juxtapose that versus 2010, it was all LP transactions.”

“Let's say in 2025 expected secondary volume is a hundred and ninety billion dollars, plus or minus.”

“In today's world, the majority of the volume that we see is probably executed around portfolio construction. And there's a lot of reasons to sell. Sometimes managers are over allocated to private equity. Limited partners are over allocated to private equity. L…”

“But beginning in 2022, where liquidity really dried up in the market, limited partners recognized the value of the secondary market to drive liquidity in their portfolios. So, rather than saying, we don't feel like we're getting top dollar, I think a lot of li…”

“People aren't being forced. They're choosing to be tactical. There's no downside to exploring the market right now. I think a lot of people are looking, but I'm not hearing anybody who's in a forced situation.”

“On the private side, if you make a mistake, you're stuck with it for 15 or 20 years, or you have to take a huge haircut in the secondary market. Sometimes you just will not find people that want to buy your crummy fund.”

“The secondary markets for private shares right now are totally anemic. Maybe a hundred late stage companies Stock trades. The primary reason that's the case is because the buy side on these markets just don't know anything about the other 30,000 venture backed…”

“Another thing we talk a lot about, but we haven't done much of, is participate in the secondary market, whether it's selling pieces of our existing portfolio or buying pieces of other portfolios.”