Jon Madorsky of RCP Advisors discusses how the growth of '40 Act funds and retail capital in 2024 accelerates demand for private equity secondaries.
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“I think when that capital comes into the market, there's pressure on those managers to invest it quickly, so therefore, secondaries is a natural avenue for that.”
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More from Jon Madorsky
PredictionNot checkable as stated
Madorsky: Retail capital will force secondaries into customer service businesses
“I think some of those reporting mechanisms are probably going to be expected by a lot of our limited partners, especially the retail community will push that idea in a pretty acute way. So it's going to move to a business of customer service. As much as invest…”
Jon MadorskyMay 29, 2025▶ 52:23Jon Madorsky – Navigating the Evolution of Private Equity Secondaries (EP.448)
AssertionNot checkable as stated
Madorsky: 40 Act funds pay 200-500 bps premium on secondaries
“Investment bankers would claim that the 40 Act funds are paying anywhere between 205 hundred basis points more than a typical fund. So it's putting pressure on the pricing.”
Jon MadorskyMay 29, 2025▶ 35:21Jon Madorsky – Navigating the Evolution of Private Equity Secondaries (EP.448)
PredictionNot checkable as stated
Madorsky: Secondary market volume could easily reach $400B to $600B
“Yeah, we could very easily see all of the secondary volume get to 406 hundred billion dollars.”
Jon MadorskyMay 29, 2025▶ 38:05Jon Madorsky – Navigating the Evolution of Private Equity Secondaries (EP.448)
Insight
Madorsky: Multi-asset GP-leds enable early exits for weaker assets
“In a multi-asset GP-led transaction, we afford the availability and we push GPs to get rid of those
Weaker performing assets. Because all of the assets are getting reset at a price, and all of the economics are getting reset, if the GP sells their underperform…”
Jon MadorskyMay 29, 2025▶ 44:56Jon Madorsky – Navigating the Evolution of Private Equity Secondaries (EP.448)
AssertionPartly supported
Madorsky: Actual PE fund lifespans stretch to 15 to 18 years
“It's not 10 years the life of a fund. It's not 12 years the life of the fund plus the two-year extensions. It's 15 to 18 years.”
Jon MadorskyMay 29, 2025▶ 47:44Jon Madorsky – Navigating the Evolution of Private Equity Secondaries (EP.448)
AssertionNot checkable as stated
Madorsky: Astonishing volume of PE asset sales failed in 2022 and 2023
“The amount of failed transactions that occurred in 2022 and 23 primary managers trying to sell their assets was astonishing. Effectively, unless it was a perfect asset, it wasn't going to trade.”
Jon MadorskyMay 29, 2025▶ 15:35Jon Madorsky – Navigating the Evolution of Private Equity Secondaries (EP.448)
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