Uncertainty caused by inflation, rising interest rates, geopolitical concerns and ongoing supply chain issues has resulted in a slow IPO market and reduced M&A activity. Market conditions have left private equity fund managers with limited exit strategies. This, in turn, impacts investors through delays to distributions and an overexposure to private markets (the denominator effect). Against this backdrop, GP-led secondaries continue to increase in popularity. Cameron Roper and Paul Tannenbaum explain why it is vital to get the structure and financing right for secondaries.
