Secondary private equity

Our Global Reach

With experience spanning more than 200 secondary transactions and nearly 20 years as secondary specialists, Newbury Partners works with sellers and funds to create liquidity solutions across the global private equity market. Secondary private equity funds Given these issues relating to taking security over fund interests, it may be considered appropriate for other forms of legal protection to be adopted instead of or alongside such security. In transactions using a deferred consideration mechanic, for example, the seller may require all or a proportion of future distributions from the funds acquired to be paid to it until the deferred consideration has been satisfied. Similarly, it is not uncommon for a lender to require portfolio distributions to be paid to it in service of both the interest and repayment of its loan. Other forms of security that may be considered include security over bank accounts or guarantees from relevant counter-parties.

Institutional investing in secondary market is called

A secondary transaction can be an important source of liquidity in a variety of situations, including: Accounting considerations For informational purposes only. The above is not meant to be predictive of the performance of any particular fund.

Unique investment strategy

There are other potential upsides of private equity secondaries. For example, they reduce the so-called “blind pool” risks as investors put money in companies that are already known - in comparison to primary investors who commit capital to a portfolio yet to be constructed. This means that the secondary buyers have the advantage of analyzing the performance and calculating the future value potential of the underlying companies. Offer advice for investors interested in getting involved in the secondary market for private equity Moonfare’s secondary market fees are:• Payable only by the seller• Payable only if a transaction is fully consummated (i.e. success-fee based)• Based on the Total Exposure* of the fund commitment being sold, defined as the sum of: • The net purchase price received; AND • The unfunded commitment released‍*minimum fees apply (see below)

Secondary market private equity

Our investor representation experience is augmented by our sophisticated private equity practice, allowing us to provide legal counsel with perspective on larger trends in the industry.  Our understanding and familiarity with market trends (including trends in fees and reporting) allow us to be a unique resource to clients and often levels the playing field in negotiations with sponsors. Our vast experience and library of side letter provisions help us ensure that our clients receive the most favorable terms consistent with the client’s fiduciary obligations and policies. Other potential benefits: Vintage-year diversification and discounts Larger pools of assets mean more consortium deals for GP-led secondaries. Secondaries transactions are rarely leveraged – although the funds themselves may have some moderate gearing – so few sponsors alone have the firepower for multi-billion-dollar investments. We are seeing sellers take control of transactions and putting secondaries funds together to negotiate deals. There is also rising demand for syndication, with Ardian’s latest fundraising including $5 billion of potential co-investment capital.