CUSTOM WEIGHTED BENCHMARKS

At last, limited partners can accurately benchmark their investments in fund of funds and funds with investments across multiple regions using Pevara’s unparalleled custom weighted benchmarks. read more...

Secondary Markets - Q&A with François Gamblin

François Gamblin interviewed by Jeremy Hocter

The private equity industry saw secondary market activity hit new highs in 2011, with volumes primed to increase in 2012 and beyond. I caught up with Francois Gamblin, CEO of Secondcap, to discuss the recent secondary market trends and find out how firms such as Secondcap are helping both buyers and sellers in this growing market.

2011 was a very active year in secondary trading; how do you see this continuing through 2012?

Secondary specialists have raised over $33 billion that they need to deploy over the next 5 years. This will lift the broader secondary market and we will see increasing volumes of positions traded. We believe the secondary market presently represents about 4% of the primary market, amounting to about $25bn last year. We also believe the liquidity in the market will increase significantly in the coming years, in part due to more deal flow from large financial institutions but also because LPs are now better educated about the opportunities in the secondary market.

What impact do you see the Solvency II rule having on the secondary market through 2012?

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2012—The Year of the Segregated Account

By Jeremy Hocter

Several new mandates announced by established LPs and GPs across America and Europe indicate that 2012 may well be the year of the segregated account. Segregated accounts, or separate accounts, enable an investor to maintain an individual portfolio of holdings (shares, securities, etc.) at a custodian while remaining invested in the fund vehicle of an underlying private equity fund. While segregated accounts provide a variety of benefits they also produce new challenges for LPs, especially in terms of benchmarking and due diligence.

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Pevara COO Paul DiBlasi considers PE benchmarking techniques

By Paul DiBlasi 

For as long as the private equity industry has been in existence, Limited Partners (LPs) have relied on benchmarks to help them evaluate the performance of their investments. However, while such practices are imperative for making accurate investment and divestment decisions, there has always been a gap in the LP tool-kit when it comes to benchmarking certain groups of funds.

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