“Managers might try to take advantage of Covid-depressed prices and set themselves up with nice lower valuations, ” said Simon Saitowitz, a specialist in secondaries deals and partner at law firm Fried, Frank, Harris, Shriver & Jacobson. In the past few months, he’s fielded more requests for GP-led restructurings than for the whole of last year.
PRIVATE equity firms are prolonging the shelf lives of their aging assets with deals that are proving increasingly popular with managers, but not with all investors.
Firms under pressure to offload assets from their expiring funds are opting to repackage them into new vehicles as the pandemic curbs the usual exit routes via sales or initial public offerings.
This once obscure corner of the private equity industry has grabbed Wall Street’s attention, with the likes of Goldman Sachs Group Inc joining investors and Citigroup Inc advising on deals.
Limited time offer:
Just RM5 per month.
