Private Equity Spotlight How specialised can the secondaries market get?
Mar 24, 2025
Nigel Dawn, Global Head of Private Capital Advisory at Evercore, Leor Landa, Head of the funds and secondaries practice at Davis Polk, and Yann Robard, Managing Partner at Dawson Partners, dive into the evolving secondaries market. They discuss the revolutionary variety of liquidity offerings for LPs, from specialized funds in healthcare to large continuation funds. The importance of performance in continuation funds is highlighted, signaling rapid innovation and growth, with a potential market valuation reaching $1 trillion by 2031.
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Explore 40‑Act Vehicles For Sticky Capital
- Managers should explore 40-Act structures as sticky, retail-capital sources that align with secondaries strategies.
- Leor Landa encourages managers to be curious and consider these accessible pools of capital.
Continuation Funds: Smoother Buyout‑Like Returns
- Early evidence suggests continuation funds may offer buyout-like multiples with lower volatility.
- Evercore's research finds CV portfolios resemble buyout co-investments but with smoother returns.
Undercapitalization Creates Short‑Term Alpha
- The secondary market remains undercapitalized with roughly one year of dry powder, creating alpha opportunities.
- Yann Robard notes undercapitalization today supports superior returns until capital floods the space.