The private equity secondary market continues to create attractive alternatives to generate liquidity—and investor interest is growing—even after aggregate volume fell last year following the highs of 2021.
To assess the state of the secondary market, William Blair’s Private Capital Advisory team conducted its inaugural survey of secondary investors. In the following report, we highlight the findings and analysis from the survey along with drivers of the secondary market in 2022 and areas to watch in the months ahead.
Key Takeaways
- How a majority of general partners have either completed or are considering pursuing a GP-led secondary transaction.
- The role of middle-market sponsors within that segment.
- How GPs are evaluating structures like continuation funds, specifically single-asset continuation funds.
- What types of assets are the most attractive targets for continuation funds, and what conditions are necessary to create a successful deal.
- Possible “green shoots,” notably within the LP secondary market.