Recent insights

10th July 2024

All or Nothing – The Importance of Data in Secondaries

In this edition of Clipway Insights, we uncover some interesting patterns in the valuation of private equity portfolio companies with TESS data that suggests GPs may be reluctant to start marking down underperforming assets. We find that these underperforming assets are statistically more likely to fall within the bottom 20-30% of the net asset value (NAV) of the mature private equity fund portfolios that secondary players tend to price. We examine the differences between these “Small” exposures compared to “Large” exposures, which account for the top 70-80% of NAV. In particular, we look at the increased volatility in final outcomes for “Small” exposures and the potential impact on investor returns in the context of LP-led secondary transactions.

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22nd January 2024

The New “Flight to Safety”: LP-Led Secondaries

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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