Valuation disconnect stands in the way of secondaries dealmaking

Jul 21, 2023 · Global secondary market dealmaking declined roughly 25% year-over-year to $43 billion in the first six months of 2023, a product of persistent pricing gaps, a lower supply of …

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Valuation Disconnect Stands In The Way Of Secondaries Dealmaking

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Jul 21, 2023 · Global secondary market dealmaking declined roughly 25% year-over-year to $43 billion in the first six months of 2023, a product of persistent pricing gaps, a lower supply of …

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Valuation Disconnect: A Hurdle In Secondaries Dealmaking

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Jul 24, 2023 · Despite the challenges, LP-led secondaries still accounted for 58% of global secondaries transaction volume in H1 2023, even though there was a 24% drop during the …

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Marcus Magarian On LinkedIn: Valuation Disconnect Stands In The …

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Valuation disconnect stands in the way of secondaries dealmaking Global secondary market dealmaking fell by 25% year-over-year to $43 billion in H1 2023 due to persistent pricing gaps, …

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Valuation Disconnect Stands In The Way Of Secondaries …

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Jul 21, 2023 · Global secondary market dealmaking declined roughly 25% year-over-year to $43 billion in the first six months of 2023, a product of persistent pricing gaps, a lower supply of …

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FAQs about Valuation disconnect stands in the way of secondaries dealmaking Coupon?

Does the widening pricing gap stand in the way of closing transactions?

Dealmakers in the secondary market suggest that the widening pricing gap continues to stand in the way of closing transactions. Robert Emerson, a partner at Goodwin Procter, noted that since the second half of last year, public market declines have turned a seller's market into a buyer's market. ...

What happens if a VC fund doesn't structure a secondaries deal?

If care is not taken in structuring a secondaries deal — and, in particular, general partner-led ("GP-led") continuation fund transactions — VC fund sponsors risk jeopardizing their Advisers Act exemption and may become subject to regulatory oversight (including additional custody, reporting and audit requirements). ...

Why does the SEC consider fairness and valuation opinions important?

The SEC recognizes that fairness opinions and valuation opinions help investors make educated and informed investment decisions because they help investors gain a more complete understanding of the financial aspects of their transactions. ...

Why did EQT pull off a continuation fund for Waystar?

PE giant EQT recently called off plans to set up a continuation fund for its portfolio company Waystar, a healthcare software provider, because the firm didn't get "adequate pricing indications" for the deal, Secondaries Investor reported. ...

Why are GP-led secondaries under scrutiny?

The GP-led secondaries had come under scrutiny in the new private assets rule of the Securities and Exchange Commission, which is concerned that the assets were purchased at a discount from an earlier fund and immediately marked up in the new one. ...

What should GPS and investors know about secondaries fund terms?

GPs and investors should consult with their legal counsel to ensure that secondaries fund terms give GPs the flexibility they need to achieve the fund’s objectives, while maintaining alignment and protecting against strategy drift. ...