Yesterday peHUB reported that Credit Suisse had started a secondary intermediary group to advise LPs on the sales of their private equity interests. We also reported a rumour that Goldman Sachs has a group in the works, which will require starting from scratch since the firm doesn’t even have a fund placement group.
Now we’re hearing from sources that Park Hill, the placement agent based in New York, has a new practice in the works. It’s being led by a guy named Larry Thuet, who is based in Chicago. For the record, Mr. Thuet provided a staunch “no comment” for the many versions of the question “Are you building a secondary intermediary group?” that I posed.
It’s probably time to take a look at every firm with a private placement group and ask if they’re launching a secondaries “middleman” group. Everyone wants a piece of the secondary action these days–let’s just hope the market doesn’t fizzle out before anyone can get their practices off the ground. PE firms can only see so many of their LP interests trade per year, anyways.
Lastly, remember that these are entirely separate from the actual funds that purchase secondaries owned by the likes of Credit Suisse and Goldman Sachs. Prior to this week, the only secondaries intermediaries we knew of were Cogent Partners, UBS, and Probitas Partners.
PE Funds Maxing Out On Secondary Sales
Q&A With a Secondaries Buyer: “We’re Making Specific Bets on Companies”
Pension Funds, Endowments Not The Only LPs Unloading Interests
It’s a Buyer’s Market: Q&A With a Secondaries Intermediary
Sharp Rise Seen in Secondary Inventory
Published Secondary Prices Are “Stale;” Venture Worse-Off Than PE
Live-Blogging PEA Outlook: Secondary Panel
Ruffled Feathers Over the Latest Take on FASB 157