Private Equity Secondaries

Due to demand for further clarification on private equity secondaries, we've created this video to discuss in detail the definition of "primary" vs. "secondary" equity markets, private equity fund secondary transactions, and private equity direct secondary transactions.

We also use real life examples to explain these concepts. When explaining private equity direct secondary transactions, we look at BlueCat Networks, a growing technology company that received capital from Northleaf Capital Partners in 2009. Seven years later in 2016, Northleaf increased its stake in BlueCat Networks by buying the stake of a private equity fund that was looking to exit its investment. This deal is a great example of a private equity direct secondary transaction!

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Disclaimer: All investment and financial information expressed in this video is for educational purposes only.

#MinkLearning #privateequity #secondaries #market #investment

[HarrisonBolton-kc]

Outstanding Steve and well spoken. Thank you.

[simonazambelli]

Very clear, professional and interesting. Thanks Steve!

[darros]

This man just got himself a new subscriber

[chillguru]

Private equity direct secondary transaction example made it understood the transaction easily can we have an example for PE fund Secondary transaction too

[matrixmacro]

Excellent, Secondaries are going to be a Big Business !!

[chrisfallon]

Steve, i appreciate your time in sharing these informative videos in the PE space. Quick question, are there any opportunities for sales guys in PE and secondaries? I can easily make 100s of calls a day, have lots of principal contacts and dont mind doing the grinding to develop new business for a fund manager. Had series 7 in the past and willing to take all exams

[hwaryouehwaryoue]

Hi Steve - could I kindly ask how PE secondaries transactions are priced? I know that they tend to trade at a discount to NAV, however some trade at a premium too. Is this discount-premium dynamic ad-hoc, or are there set rules when it comes to pricing? Thank you

[dcwalk]

Well explained and illustrated, thank you.

[yiliangchen]

Whether the PE secondary prevents the J curve depends on how much premium it pays to the PE seller? If it pays too much and the start-up goes bad, PE secondary loses money

[mpumelelomadonsela]

Brilliant content Steve, many thanks.

[isabellacroes]

Thank you so much for this clear explanation!

[laurencetarquinio]

Why do some companies have separate teams for secondariies? Isn't the process of acquiring the asset similar to regular PE?

[donomarkaguila]

Hi Steve, I really appreciate your videos! I have a question. Sounds like secondaries is a perfect scenario, you mitigate the J curve, you have a more liquid asset in less time. Why would anyone invest on a regular 10 y PE fund if you can buy a secondaries fund? I don’t see the trade off. Sounds like a win win situation.

[sasiralla]

Hi Steve,
Thanks for the great video. Is there a course we can subscribe to for accessing detailed videos?.
Thanks!

[Skeemo]

Hey Steve, I’m new to the concept wondering if there is a platform for secondaries? I’ve started a self-funded firm in Toronto so I’m really appreciating the content.

[cosmeticsurgeonuk]

How can you find out when the PE fund term ends?

[mayankndasannacharya]

love the content, but please please look straight, kinda throwing me off