Nov. 26, 2019
Private fund secondaries: Your end, my beginning
Historically, the market viewed secondary transactions as a sign of distress where sellers were pressured for liquidity and forced to sell assets at steep discounts. This is no longer the case and even some of the largest private equity buyout shops have formed funds and raised capital specifically to take advantage of secondary opportunities.
Sara L. Terheggen
Founder and Managing Director
The NBD Group, Inc.
UC Berkeley Boalt Hall
The NBD Group, Inc., a leading legal and business solutions firm. Dr. T has advised on transactions with an aggregate value of more than $110 billion, including more than 20 IPOs, and she has been recognized close to 50 times for her professional expertise and leadership.
In the most traditional sense, private equity and venture capital funds make direct investments in companies. The fundamental goal in these investments is to realize return when the company is sold or goes public, an investment horizon that may take anywhere from five to 10 years on average to realize returns. But, secondary transactions give investors an expanded pipeline of opportunities by buying company stakes from a direct investor in a ...
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