Verus examines the rise of GP-led secondary transactions in private equity and how they are evolving into a core liquidity tool rather than a niche solution. It highlights how sponsors are using these deals to extend hold periods and manage portfolios amid slower traditional exits.
2020 Private Equity Outlook
Verus Investments
Research
42 Pages
Key Takeaways
Secondaries Market Expansion: GP-led secondaries have exceeded $40B in annual volume, signaling a structural shift toward widespread adoption across private equity managers.
Exit Environment Pressure: Global buyout exit value dropped over 50% in Q2 2020, accelerating the use of continuation vehicles as traditional liquidity channels stalled.
Alignment Concerns Rising: More than 60% of LPs report concerns around conflicts of interest, particularly regarding valuation transparency and GP-led deal structuring.
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