Ivan and Pauline consider the liquidity crunch to be the key challenge facing the industry at present. They explained that in an environment where conventional exit options have dried up and financing for new deals has become costlier and more difficult to obtain, only private equity managers with the appropriate tool kits for value creation and with experience in investing through cycles will be able to thrive.

For both GPs and LPs, secondaries have become an essential tool for accessing liquidity. The market’s annual transaction volume has now reached more than USD 130 billion globally and innovative solutions have emerged. Continuation funds, for example, have developed strongly during and after the Covid-19 period and now account for around 40% of the secondaries market. The segment can represent a “win-win-win” for both GPs and LPs, according to Ivan and Pauline.

Find out more here (article in French behind paywall).