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

Tail End Report - 2021 Research: Re-examining PE Fund Performance & Secondary Market Analysis
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 - Final

2019 Research on Tail-End Funds
• On average, Tail-End Funds lose value, regardless of quartile ranking
• The opportunity cost of holding Tail-End Funds is enormous
• Stellar returns aren’t required to compensate for selling at a double-digit discount
The report aims to provide tools to private equity investors to better evaluate the decision of whether to hold or sell non-core investments.
To read the full report, click on the following link: Tail End Research Report – 2019 – Upwelling Capital Group
