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Are LPs Missing the Boat? Examining GP-Led secondaries in the private equity market

Upwelling has released a research report on the proliferation and impact of GP-led secondaries in the private equity industry and within institutional portfolios. The report highlights the performance of Continuation Vehicles (“CVs”) over recent years and presents an analysis on the potential returns that LPs may miss by selling and not rolling into the new vehicles. The report addresses the decision that LPs face and provides the following results and recommendations:

  • Systemically avoiding CV transactions has a tangible opportunity cost of 8% in a single vintage year
  • Both GPs and LPs should embrace GP-led transactions as an important tool for capital raising, portfolio management, risk mitigation and overall improved investment performance
  • The report highlights that institutional investors are the most attractive long-term sources of capital
  • Successfully participating as a CV investor is contingent on implementing investment policy and an operating model that allows institutions to  respond in a commercial fashion, whether using internal or external resources

To read the full report, click on the following link: Continuation Vehicles Research Report Link

About Upwelling Capital Group

Founded in 2011, Upwelling Capital Group LLC (“Upwelling”) is a registered investment adviser that provides customized strategies and solutions to enhance the overall returns for premier alternative investments. Upwelling specializes in providing secondary liquidity solutions across asset classes and capital structures. Principals have cumulatively overseen over $50 billion in global private equity commitments and have successfully managed over $5 billion in legacy, tail-end commitments, transfers, and workouts for leading institutional investors. Securities offered through Bridge Capital Associates, Inc. Member FINRA / SIPC

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