**Updated with source and spokesperson comments below.**
The secondary intermediary field isn’t a crowded one. Until recently, your advisory options for unloading LP interests on the secondary market were limited to Cogent Partners, UBS, or Probitas Partners. It makes sense, since prior to last year, the demand for their services hasn’t overwhelmed the market’s existing players.
But now, with distressed LPs selling at deep discounts, there’s a renewed interest in the asset class by anyone and everyone, including, you guessed it, the investment banks. The latest example is Credit Suisse. According to several sources, the firm has launched a small secondary intermediary program within their fund placement group (or perhaps re-launched a sleeping program, it’s not clear.) From what we hear, the practice is being led by a guy named Campbell MacColl. Mr. MacColl did not return my repeated calls.
Today Clusterstock reported that Goldman Sachs is also rumored to be operating a secondary intermediary group, and that it has “become a major business within the past couple of months.” One industry source I spoke with said that’d be a surprising development, since the firm doesn’t have a fund placement group, so it would have to hire externally.
UPDATE: peHUB has learned the firm has not officially launched an intermediaries practice, however, there may be one in the works.
On the other hand, Goldman Sachs has always had a secondary fund, which purchases LP interests, a Goldman Sachs spokesperson said. The firm declined to comment on the intermediaries question.
I wouldn’t be surprised to see more private placement groups launch secondary practices in the coming year as the demand for regular fund placement services shrinks.
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