Toomey: Private equity access expanded beyond standard 10-year fund commitments
John Toomey · Private Equity Masters 1: John Toomey – HarbourVest Partners (Capital Allocators, EP.200) · Jun 21, 2021 · at 42:54
John Toomey, CEO of HarbourVest Partners, discusses the structural evolution and atomization of liquidity options in private equity markets with host Ted Seides.
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“So for the beginning of the industry until the last 10 years, if you really wanted to invest in private equity, your choices were generally a ten-year limited partnership. You would make an investment up front, and then the manager would invest and create liquidity and send the capital back over time, and you basically had to wait. And what has changed is there's now multiple ways for institutional investors and non-institutional to get access to the underlying companies. They could access it through co-investments. They could access it through a continuation fund that the manager is doing in year seven, or maybe there's an LP tender at some point. So you don't have to actually wait till the end. You can both exit and enter at different points in time.”
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