How LPs

feel about
secondaries
PERSPECTIVES 2019
 Click here
PE far outstrips other asset classes to read the full LP
Almost half of investors plan to buy or sell fund stakes in private equity, according to a survey by Perspectives report
sister publication Private Equity International analysing investor sentiment

Do you plan to buy or sell fund stakes on the secondaries market in the next 12 months?

100

90

80 19.8
22.2
24.7
70 30.8

60

50
%

32.6
4.7
40

30

20 22.1 58.0 55.6

4.9 3.7

10 59.0
8.6
12.3 5.1
0 20.9 6.2 3.7
Private equity Private real estate Infrastructure Private debt

Yes, both buying and selling Yes, buying only Yes, selling only Neither buying nor selling Unsure

Source: Private Equity International/LP Perspectives

 Click here
Secondaries are firmly in investors' thoughts to read more on
Funds in the strategy are popular with LPs secondaries
in LPs' portfolios

Do you plan to commit capital to private equity secondaries funds

over the next 12 months?

11.5%

47.1%

41.4%

"It looks like the strategy

is firmly anchored in LPs'
investment agendas and is
here to stay"
Bernhard Engelien, managing director,
Yes No  Unsure
Greenhill
Source: Private Equity International/LP Perspectives
There are plenty of places for LPs to put their money Click here
to access
Secondaries Investor's new database tracks funds in market and LP commitments by appetite, strategy and geography the database

Top five funds in market

Ardian Secondary Fund VIII 12.0

Lexington Capital Partners IX 12.0

Coller International Partners VIII 9

Strategic Partners Fund VIII 8

Goldman Sachs Vintage Fund VIII 6.75*

0 1 2 3 4 5 6 7 8 9 10 11 12
$bn

*Estimated at $6.5bn-$7bn

Source: Secondaries Investor

 Click here
Institutional investors continue to re-up to see Secondaries
The database tracks which LPs have committed to which funds – click the links below to see the investor's profile Investor's fundraising
coverage

Known investors in ASF VIII

Size of commitment
Florida State Board of Administration $200m
Tennessee Consolidated Retirement System $150m
University of Houston System $7.5m

Known investors in Lexington IX

Size of commitment
Florida State Board of Administration $250m
Minnesota State Board of Investment $150m
Anne Arundel County Retirement & Pension System $25m
University of Houston System $10m
"Secondaries have
become another tool to
manage our portfolio
and one that I believe
we will increasingly
use in the future"
John Bradley, senior investment
officer, Florida State Board of
Administration
Source: Secondaries Investor
Fund restructurings divide opinion Click here
to read the full LP
GPs are increasingly instigating restructuring processes on older funds in order to move assets into a new vehicle. Perspectives report
LPs were asked whether they believed:

You have sufficient information to decide You have sufficient time to decide whether to
whether to roll over or cash out? roll over or cash out?

32.5%
35.3%

42.4%
44.6%

22.9%
22.4%

Yes No Have not been party to a restructuring Yes No Have not been party to a restructuring

Source: Private Equity International/LP Perspectives

This report was compiled from data collected for
PEI's LP Perspectives survey published in
December 2018.

Adam Le Rod James

Editor Reporter
Secondaries Investor Secondaries Investor
adam.l@peimedia.com rod.j@peimedia.com
+44 (0)207 566 5437 +44 (0)207 566 5453

Graeme Kerr Nicole Douglas

Special Projects Editor Head of Investor Research
Private Equity International PEI Media
graeme.k@peimedia.com nicole.d@peimedia.com
+44 (0)203 862 7491 +44 (0)203 879 3894

Contributors
Claire Coe Smith, Sophie Colby, Marine Cole, Sheikh Jahan,
Rod James, Rob Kotecki, Raymond Lau, Adam Le, Alex Lynn, Isobel
Markham, Toby Mitchenall , Vicky Meek, Carmela Mendoza,
Muhammad Obaid, Emmanuel Osondu, Victoria Robson, Craig
Savitzky, Stephen Schultz, Matthew Xia, Chin Yuen

Production: Julia Lee Design: Miriam Vysna

CLICK HERE to download the data CLICK HERE to go to the Secondaries Investor database