This report is powered by proprietary insights from TESS, Clipway’s Tech-Enabled Secondaries System – a next-generation, fully integrated investment and monitoring tool that harnesses technology to put data science at the core of LP-Led secondaries investing. TESS capitalises on the large volumes of data generated by diversified portfolios of private equity funds, which have historically been underutilised. These insights are driven by over $15 billion of deal flow analysed in the past 6 months, covering c. 200 unique mainly buyout funds and over 2,000 underlying portfolio companies.
In this inaugural edition of Clipway Insights we examine the major factors influencing the private equity industry in 2024 and beyond, in the context of macroeconomic uncertainty and depressed levels of deal flow and liquidity.
We focus on the challenges facing the three traditional pillars of value creation: valuation multiples, leverage and operational improvement.
We then outline how the secondaries market will continue to play a key role in generating liquidity for both market participants during this time, with LP-led secondaries providing a “flight to safety” for investors.
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