07 Apr 2021

Secondaries roundtable discussion: How has the market reacted to the pandemic?

Ian Wiese

Head of secondaries

Investec’s head of secondaries, Ian Wiese, recently appeared on a roundtable discussion with other leading experts in the field. The panel discussed the market's reaction to the Covid-19 pandemic and what to expect from secondary activty in the near future.

Listen to the discussion

The discussion was hosted by Real Deals editor Talya Misiri. Investec's Ian Wiese was joined by Graham Thomas, Managing Partner at Stage Capital; Raj Chall Principal of Secondaries Investments at Hamilton Lane; Petra Bukovec partner at Pantheon and Valerie Handal Managing Director at HarbourVest. 

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Summary of the discussion:

  • The panel was in agreement that the market had bounced back quickly in the second half of the year. This was particularly prevalent on the GP-led side.
  • However, from an LP perspective, deal flow significantly slowed down in Q2. Given the uncertainties in the market, buyers have been more cautious and sellers have not started to adjust price expectations in response yet.
  • A number of the panellists acknowledged the slowdown in deal flow during Q2. Instead, there was a focus on areas that led to recovery and growth. GPs were using this opportunity to learn about liquidity alternatives in the market.
  • Market uncertainty has impacted the pricing of secondary funds. This has led to stand-offs between what the seller believes the price should be, compared to what the buyer predicts the price will be in a post-pandemic world. Fund owners will need to be cognizant of what the business will really look like when stimulus runs out.
  • Deployment pace has been maintained despite an initial slow down with the onset of Covid. It also still maintains the level seen in 2019. 
  • Stimulus and the size of the market have been some of the key differentiators between the pandemic and the global financial crisis, thereby limiting distressed trades. 

 

Please note: this content was originally curated by Real Deals

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  • Ian Wiese

    Ian Wiese

    Fund Solutions

    As an origination director for Fund Solutions, I provide a range of flexible leverage solutions to funds and fund managers across private equity, infrastructure and other fund strategies. My main focus is in the UK primary and the European secondary markets.

    I work with clients to help them improve returns, optimise their balance sheets, create liquidity and facilitate opportunities. This can be achieved through various solutions such as GP facilities, structured fund bridging, concentrated NAV-based funding and secondary leverage.

  • Michael Zornitta

    Michael Zornitta

    Fund Solutions

    I work within the Fund Solutions origination team to help support our existing clients and drive new opportunities and strategies. This includes supporting funds through all stages of their lifecycle and providing our clients with innovative and flexible financing solutions

Contact us

Ian Wiese

Fund Solutions

As an origination director for Fund Solutions, I provide a range of flexible leverage solutions to funds and fund managers across private equity, infrastructure and other fund strategies. My main focus is in the UK primary and the European secondary markets.

I work with clients to help them improve returns, optimise their balance sheets, create liquidity and facilitate opportunities. This can be achieved through various solutions such as GP facilities, structured fund bridging, concentrated NAV-based funding and secondary leverage.

Michael Zornitta

Fund Solutions

I work within the Fund Solutions origination team to help support our existing clients and drive new opportunities and strategies. This includes supporting funds through all stages of their lifecycle and providing our clients with innovative and flexible financing solutions

Please note: this content is provided for information purposes only and should not be construed as an offer, or a solicitation of an offer, to buy or sell financial instruments. This content does not constitute a personal recommendation and is not investment advice.