News & Events

Michael Wolitzer, Head of the Firm’s Investment Funds Practice, was quoted in The Deal in an article titled, “Q1 Flash Report: PE Rebound Continues With Lofty Valuations, Big Buyouts.” The article analyzed recent trends and newer deal types emerging in the private equity market. Michael said he has seen more private equity firms selling part of their older funds to other investors—in transactions known as GP-led secondaries—with clients globally looking to raise dedicated funds in order to be the capital in these deals. “We see this as a trend line for 2021. We believe that GP-led and continuation vehicles will continue to be a meaningful part of the secondary market,” Michael said.

In addition, Michael noted that while the number and total value of private fundraisings dropped slightly in 2020, the number of funds fell by a much larger percent than the total amount of capital raised. "That suggests an overall trend line of more concentration among PE firms, which in turn stems from LPs wanting to only invest in four to six sponsors instead of 15 or 20. That was a trend in 2020 and it doesn’t seem to be letting up in 2021,” he explained.

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