News & Events

Funds Partner Lauren King was quoted in a Wall Street Journal article titled “Third-Party Valuations Gain Traction in Single-Asset Secondary Transactions.” The article examined the growing trend among private equity firms of selling small stakes in portfolio companies to other private equity firms before seeking to recapitalize those companies on the secondary market. The deals can help a private equity firm to set a company’s valuation, which may then be used to price the asset in a separate secondary transaction. Lauren explained that these types of transactions may also help alleviate investor concerns about potential valuation conflicts associated with single-asset secondary deals. “These kinds of deals could be especially attractive for pension systems who are hypervigilant about conflicts and I would imagine they would welcome this external pricing of assets—a validation by a third party,” she said.

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