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

Upwelling participated in the process evaluating the GPs. Founder, Joncarlo Mark, served as one of eight the panel judges.

The panel consisted of the following industry experts:

• Steven Kaplan, University of Chicago Booth
• Veronique Lafon-Vinais, Hong Kong University of Science and Technology
• Jian LI, AlixPartners
• Michael McKenna, Alvarez & Marsal
• Ivo Naumann, McKinsey & Company
• Valentina Pozzobon, Humatica
• Antoon Schneider, Boston Consulting Group

To see the article and list of the award winners, click on the following PEI link: PEI Awards 2021

• Tail-end funds, on average, do not appreciate regardless of strategy
• $140 million – the opportunity cost of holding $1 billion in tail-end funds
• $370 million – the opportunity cost of holding $1 billion in tail-end funds, if top quartile performance can be achieved upon reinvestment

Interestingly, the secondary market has grown to provide multiple tools that both GPs and LPs can use to maximize value in their tail-end funds and positions.

To read the full report, click on the following link: Tail End Research Report 2021 – Final

Upwelling has released an updated research report re-examining private equity performance of “Tail-End Funds” (funds operating beyond 10 years). Some of the key highlights and affirmations of the previous study include the following:

Tail-end funds, on average, do not appreciate regardless of strategy
$140 million – the opportunity cost of holding $1 billion in tail-end funds
$370 million – the opportunity cost of holding $1 billion in tail-end funds, if top quartile performance can be achieved upon reinvestment
Interestingly, the secondary market has grown to provide multiple tools that both GPs and LPs can use to maximize value in their tail-end funds and positions.

To read the full report, click on the following link: Tail End Research Report 2021“>Tail End Research Report – 2021 – Upwelling Capital Group

Rodriguez shares, “The GSM has always boasted a close-knit, strong alumni network, but I didn’t know how that could pay off in my own career until I met Mark and the Upwelling staff.”

Read the full blog here.

Click on the following link to see more details and register: https://cumbreamexcap.com/

During his first panel, Mark will interview the day’s Keynote, Upacala Mapatuna, President and Managing Director for Centre Lane Partners. The conversation will expand on Mapatuna’s perspective on the middle market from an experienced private equity and private credit investor lens.

Secondly, Mark will touch on the Institutional Investor perspective as he “sits down” with leading LPs including Greg Turk from the Teachers’ Retirement System of Illinois and Matt Coyce from Askia.

For more information, click on the following link to view the agenda and register for the event:
Middle Market Private Equity Web Meeting

The webinar will feature secondaries experts in private equity, venture capital, real assets and private credit. Gathered will be a cross section of industry leaders who will share both GP and LP perspectives on the evolving market. Panel topics include the nuances of secondary transactions in a remote-work and diligence environment, the art and hurdles of GP-led secondaries, and planning and executing LP portfolio sales in the current volatile market.

Click here to register:
The Private Markets Secondaries Web Meeting

Click here to see the full agenda:
Private Markets Secondaries _2020_Final Agenda

See more details and register here.There is no fee to join this webinar.