Name: The state of secondaries: How is it developing in Europe?
Uploaded: 2024-04-24T09:56:45.132Z
Duration: 141.96
Description: Elena Laleh, Managing Director, Kline Hill Partners, joined us to let us in on how the European Secondaries market will develop in the future. Who are the new players entering the market, how is the growth in the asset class affecting the competitive and supply-demand dynamics and what will be the biggest trends in 2024?

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SUPERRETURN_SECONDARIES_EU_2024_INTERVIEW_ELENA_LALEH (1).vtt

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{{00:00:12}}
I don't think there has been really a lot
of new entrants in the past couple months.

{{00:00:17}}
If I would need to name one group, I
would say it's the direct buyout firms

{{00:00:21}}
that are entering the GP led space.

{{00:00:24}}
It's a natural addition to their business
and why they're entering it,  you're

{{00:00:31}}
missing out on the greatest assets if
you're not active within the GP led

{{00:00:34}}
space because sponsors are moving the
best companies into these vehicles.

{{00:00:48}}
I would say like last year has been like
a record year in terms of fundraising

{{00:00:52}}
the majority of that capital has been
raised like around 80 percent within

{{00:00:56}}
like very large secondary funds.

{{00:00:58}}
So I do expect more competition at the
large end of the market and like deals

{{00:01:02}}
that are 500 million or more in size.

{{00:01:05}}
It doesn't impact us so much because
we focus on like deals that Smaller

{{00:01:09}}
than 10 million on average, where you
don't have these fluctuations so much.

{{00:01:21}}
The secondary market has been quite under
capitalized in the past couple months.

{{00:01:25}}
So this year we should see a
better supply and demand balance

{{00:01:28}}
because of the fundraising.

{{00:01:30}}
The strong fundraising year last year.

{{00:01:32}}
And we haven't, like for example
on the GP led side, some of the

{{00:01:36}}
deals just couldn't get done
because there wasn't enough capital.

{{00:01:40}}
So that should play out
more evenly in this year.

{{00:01:43}}
And if you compare it to other
asset classes, the secondary

{{00:01:46}}
market still has much less capital.

{{00:01:49}}
So it's still like a very
interesting space to be in.

{{00:01:59}}
Yeah, I could see 24 being a record
year for secondaries in terms of volume.

{{00:02:04}}
LPs are looking for liquidity and
GPs are trying to generate DPI.

{{00:02:10}}
So it should both be like beneficial
to LP led and GP led deals.

{{00:02:14}}
Should be a good year for secondaries.

I don't think there has been really a lot
of new entrants in the past couple months.

If I would need to name one group, I
would say it's the direct buyout firms

It's a natural addition to their business
and why they're entering it,  you're

missing out on the greatest assets if
you're not active within the GP led

space because sponsors are moving the
best companies into these vehicles.

I would say like last year has been like
a record year in terms of fundraising

the majority of that capital has been
raised like around 80 percent within

So I do expect more competition at the
large end of the market and like deals

It doesn't impact us so much because
we focus on like deals that Smaller

than 10 million on average, where you
don't have these fluctuations so much.

The secondary market has been quite under
capitalized in the past couple months.

So this year we should see a
better supply and demand balance

And we haven't, like for example
on the GP led side, some of the

deals just couldn't get done
because there wasn't enough capital.

So that should play out
more evenly in this year.

And if you compare it to other
asset classes, the secondary

So it's still like a very
interesting space to be in.

Yeah, I could see 24 being a record
year for secondaries in terms of volume.

LPs are looking for liquidity and
GPs are trying to generate DPI.

So it should both be like beneficial
to LP led and GP led deals.

Elena Laleh, Managing Director, Kline Hill Partners, joined us to let us in on how the European Secondaries market will develop in the future. Who are the new players entering the market, how is the growth in the asset class affecting the competitive and supply-demand dynamics and what will be the biggest trends in 2024? 


