Investment Management Team Interviewed by PEI on Secondaries Activity and 2023 Expectations

Akin investment management partners Mary Lavelle, Daniel Quinn and Fadi Samman were interviewed by Private Equity International (PEI) for the profile piece “Making use of the evolving secondaries toolbox.”

The in-depth keynote interview centred on how today’s secondaries technology can provide flexible solutions for GPs and LPs during times of market turmoil. A few highlights from the Q&A:

• Transaction types most active in secondaries: Samman: “What we have seen, particularly in the second half of last year, is a market reversal. Whereas previously GP-led transactions were dominant and the most active part of the secondaries market, towards the back end of last year traditional secondaries– meaning LP to LP sales – began to take prominence again and dominate activity.”
• Market developments going into 2023: Quinn: “We are heading into a time of capital constraints from an investor perspective, which is going to drive a lot of secondaries market activity. One thing that GPs are thinking about is how they can access secondaries activity as a fundraising tool, which can be done in a variety of ways.”
• Supply-demand dynamics through the year: Lavelle: “The expectation is that activity will start to pick up slowly and then burst into life in the second half, with some predicting similar deal volume for the full year as we saw in 2021. It will certainly be a steadier start, but the maturation of the secondaries market means the highs and lows of activity levels are less pronounced than they used to be, so we expect 2023 to wind up being another busy year.”

The full article can be read here.