Will continuation vehicles eat funds for breakfast? As continuation vehicles increase in size and the market becomes ever more liquid for the highest quality assets, and sponsors, a natural question is: what does this trend mean for alternatives? This will divide opinion, but a very robust CV market presents risk for LPs only investing in closed-ended, blind pool funds. GPs will increasingly be able to take their best assets out of funds and hold them for longer in single asset structures, while slower-burn portfolio companies stay put in traditional funds. Over time, GPs will increasingly look like conglomerates. How long until we see a mid-market US or European GP with 2/3 of its capital represented by 3-5 large continuation vehicles? For LPs however, there's an opportunity to build a portfolio of high quality, large direct positions, accessed through existing fund relationships, with very low blind pool risk. It may well be that funds become efficient origination vehicles for both GPs and LPs to identify the best assets that they want to hold for 5+ years outside of traditional fund structures. #privateequity #secondaries #continuationvehicles #alternatives #emergingmanagers
Hildred Capital closes oversubscribed continuation fund at $750 million. The deal marks Hildred’s first continuation fund and will house assets Crown Laboratories, Inc. and Hyland's Naturals. Evercore was the financial adviser on the deal. David Solomon | Andrew Goldman #Secondaries #Secondary #SecondaryMarket #AlternativeInvestments #PrivateMarkets #Deals https://lnkd.in/e6nTrW8N
