CAIA - CIT 5 - Private Equity Secondaries Flashcards
An LP typically (does/does not) need a GPs consent to sell its LP interests.
An LP typically does need a GPs consent to sell its LP interests.
The ___ date or ___date serves as the basis for secondary prices.
The valuation date or reference date serves as the basis for secondary prices.
___-___ ___cash flows are incorporated into the final purchase price at closing.
Post-reference date cash flows are incorporated into the final purchase price at closing.
Generally, secondary transactions occur within a ___-___ year time lag of primary fundraising.
Generally, secondary transactions occur within a 3-5 year time lag of primary fundraising.
Today, secondary transactions relative the the overall PE market is ___ and represents ___than ___% of the unrealized value.
Today, secondary transactions relative the the overall PE market is small and represents less than 2% of the unrealized value.
The ___ ___ is the percentage of primary made to funds that translated into secondary transactions and is estimated to be only ___-___% for commitments made
The conversion rate is the percentage of primary made to funds that translated into secondary transactions and is estimated to be only 1.5-2% for commitments made
Regulatory changes have made it ___ for some established investors to remain invested in private equity.
Regulatory changes have made it difficult for some established investors to remain invested in private equity.
With ___ ___, part of the secondary’s purchase price is paid in installments after the transaction has closed and the assets’ title transferred from the seller to the buyer.
With seller financing, part of the secondary’s purchase price is paid in installments after the transaction has closed and the assets’ title transferred from the seller to the buyer.
Under ___ ___financing, assets are purchased by a special purpose vehicle using capital from the ___tranches.
Under structured product financing, assets are purchased by a special purpose vehicle using capital from the structure’s tranches.
Private equity secondaries has evolved to include a range of fund specialists that differ by several factors:
- F
- I
- F
Private equity secondaries has evolved to include a range of fund specialists that differ by several factors:
1. Fund Size
2. Industry Footprint
3. Flexibility in Strategy
___ funds account for the majority of capital deployed in the secondary market.
Large funds account for the majority of capital deployed in the secondary market.
The large end of the market is becoming more ___ and ___.
The large end of the market is becoming more efficient and expensive.
GPs generally (do/do not) prefer buyers that are also engaging in primary investments as opposed to pure-play platforms focused on secondaries.
GPs generally do prefer buyers that are also engaging in primary investments as opposed to pure-play platforms focused on secondaries.
Integrated platforms can leverage their interactions with numbers GPs via their ___ ___activities and ___-___ ___.
Integrated platforms can leverage their interactions with numbers GPs via their primary investment activities and post-investment monitoring.
___ ___are complex transactions that typically result due to misaligned interests between GP and LPs and generally get addressed at the end of a fund’s term.
Fund restructurings are complex transactions that typically result due to misaligned interests between GP and LPs and generally get addressed at the end of a fund’s term.
