1-Hour Program

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Overview

Over the last few years, General Partner (“GP”)-led secondary transactions have become mainstay for many private equity firms. As the name suggests, in a GP-led Secondary, the Private Equity Fund’s GP initiates a sale of one or more of its portfolio companies to a new fund formed by a new set of limited partners (LPs). The GP typically continues to manage the portfolio though now as the GP of the new fund. These transactions allow the manager and investors a combination of liquidity (i.e. returning cash to current LPs) as well as the ability to prolong the holding period for the GP and a combination of existing and new LPs. These transactions can involve “high-quality” assets that the GP wants to retain in its portfolio: by employing a GP-led secondary transaction, the GP is able to continue to maximize an asset’s value, and (importantly) avoid being forced to sell an asset with significant potential upside at the end of the fund’s life.

Joseph Ehrlich, National Practice Leader for Private Equity, Family Office and M&A at Brown & Brown Risk Solutions, will be joined by Isabel K.R. Dische, Partner at Ropes & Gray LLP, James C.H. Lee, Partner at Proskauer, and Evert Vink, Partner at New 2ND Capital, as they explore the following topics:

  • An overview of the GP-led Secondary (5 minutes)
  • Trends relating to GP-led Secondary strategy adoptions (10 minutes)
  • What has driven the growth of the GP-led Secondary market? (5 minutes)
  • The benefits of GP-led Secondaries (5 minutes)
  • What is the typical structure of a GP-led secondary transaction? (10 minutes)
  • What is the typical process of such transaction and what roles and potential conflicts could the stakeholders have? (10 minutes)
  • The legal and other challenges of GP-led Secondaries (10 minutes)
  • The future of GP-led Secondaries (5 minutes)

 

Who Should Attend:  In-house counsel, outside attorneys, finance and other allied professionals interested in gaining a better understanding of GP-Led secondary transactions

Program Level: Overview

Prerequisites: None

Advanced Preparation: None

 


Credit Details

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