News & Events

Funds Partner Lauren King was quoted in The Wall Street Journal in an article titled, “Some Private-Equity Firms Ditch the Status Quo in Secondary Deals,” which explored both the rise of secondary deals in prominence and the changing nature of related investor terms. The article described the historical prevalence of a status quo option for LPs in sponsor-led secondary transactions and a recent shift in investor and market sentiment, leading several sponsors to forgo the status quo option for LPs in new GP-led secondary deals. Lauren explained that, in addition to GPs, investors are also sometimes wary of this option as new money flowing into the fund’s assets from secondary buyers naturally dilutes the existing investors’ indirect stakes in those assets. “There are LPs who are sensitive to this and, as a result, some GPs have been hesitant to offer this option,” she said.

To read the article, please click here (subscription required).