The secondary market for private assets has grown from ~$500 million of transaction volume in the early 2000s to $130+ billion in 2021. The market has become a portfolio management tool used by limited partners and general partners alike, and touches nearly every private market participant. Secondary transactions offer great opportunities for investors, providing them with the ability to invest in existing assets with reduced blind pool risk and shorter duration. For transaction counterparties (i.e., limited partners and general partners), the market provides an effective mechanism to raise capital, create additional value for trophy assets, modify portfolio strategy, and reduce risk.

Portfolio Advisors has provided private equity liquidity solutions to limited partners and general partners across more than 160 transactions since 2002. Portfolio Advisors has acquired buyout, growth, venture, special situations, credit and real estate assets across North America, Europe, and Asia-Pacific. Our secondary strategies focus on the middle market within these verticals which aligns with the firm’s expertise.

Portfolio Advisors is viewed as a preferred partner by transaction counterparties due to our significant experience executing complex transactions and history of providing integrated capital solutions across primaries, co-investments, secondaries, and credit.

Portfolio Advisors invests in the secondary market via two main strategies:

Limited Partner Secondaries

Limited partner secondaries are purchases of existing limited partner interests in private equity funds from selling limited partners. These transactions can be highly bespoke and range from an outright purchase of the interest to structured solutions to achieve a seller’s objectives. Benefits of limited partner secondaries include:

  • Purchasing fund interests at a discount to fair value
  • Mitigating the J-curve and shortening hold periods
  • Reducing blind pool risk by investing in funded portfolios
  • Creating a meaningfully diversified portfolio in a shorter timeframe

GP-led Solutions

GP-led solutions are purchases of existing companies from a private equity fund; the companies are acquired by a new vehicle which is typically managed by the same sponsor. These transactions range from purchases of single companies to full liquidity solutions for a portfolio of companies held by a fund. Benefits of GP-led transactions include:

  • Positive selection bias; companies purchased from existing funds are generally trophy assets
  • Eliminating blind pool risk by investing in companies with a historical operating track record under the existing sponsor
  • Purchasing assets at an attractive value
  • Mitigating the J-curve and shortening hold periods

Portfolio Advisors Approach

Portfolio Advisors secondary investors benefit from our unique approach to the market:

  • Leveraging our Platform: We source a wide breadth of secondary opportunities from our different investment verticals and strong sponsor relationships.
  • Middle-Market Focus: Focus on the middle market where there are differentiated return prospects across a greater number of opportunities.
  • Investing with Core Managers: We seek to invest in high-quality assets backed by sponsors with whom Portfolio Advisors has had longstanding and successful relationships.
  • Constructing Diversified Portfolios: We seek to acquire mature, high-quality funds/assets diversified by vintage year, industry, and sector.
  • Valuable Information Advantage: Through our platform, proprietary database and longstanding sponsor relationships, we have a valuable information advantage, which stand-alone secondary funds may not have.
  • Experienced and Stable Team: Our team has more than 130+ years of aggregate private markets experience and has completed more than 160 secondary transactions.

Senior Members of the Secondaries Team

Stephen Sloan
Managing Director
Patrick Gerbracht
Managing Director
Briac Houtteville
Managing Director
Justin Lux
Managing Director
Brian Mooney
Managing Director
Co-Head of GP-led Secondaries
U.S.
Hugh Perloff
Managing Director
Head of Secondaries
Tim Henn
Senior Vice President
Jorge Rossello
Senior Vice President
Michael Song
Senior Vice President
Patrick Brown
Vice President