Who do you typically buy from?
We transact with leading growth equity and buyout firms, lenders, financial institutions, corporate venture firms, founders and employees / individuals.
What securities do you purchase?
In our direct secondary transactions, we purchase shares (common and preferred) directly in underlying private companies. In our GP-led transactions, we purchase partnership interests in a GP-sponsored vehicle that in turn holds underlying private company stock.
How do you value companies and what’s the secondary discount?
We don’t price based on discounts. We complete a bottoms up analysis and try to deliver pricing that is both fair and attractive to the selling shareholders.
What is your due diligence process?
Our process is streamlined and efficient, with a goal of minimizing management distraction. We look to provide sellers with early feedback within two weeks after receiving financial information on the business, and to close in under 90 days.
What rights are you looking for?
In both our direct secondary and GP-led transactions, we are focused on alignment with our institutional investor and management partners. We are comfortable valuing and purchasing existing securities including preferred and common stock, subject to alignment of shareholder interests and risk. In most cases, we are seeking standard institutional investor minority rights and are typically assuming the rights and privileges of the selling shareholders.
Will you provide equity for tender offers?
Yes. We have significant experience managing shareholder tender offers.
Will you provide capital for GP-led continuation funds or acquisition funds?
Yes. Similar to our core direct secondary strategy, we view GP-led secondary transactions as another path to partnering with strong institutional investors and accessing market-leading businesses that aren’t otherwise for sale or raising capital.
Do you buy portfolios?
Yes. We engage in transactions including a single asset as well as portfolios of assets.
What is your approach to primary capital?
We are supportive of providing primary capital concurrent with or subsequent to a secondary transaction.
How will you work with the ongoing investors after the deal?
We go into deals underwriting to the timeframe and operating plan of the ongoing investors and management. We are board participants in the majority of our investments but it is not a requirement and depends upon ownership and stage of the company.
How would we take next steps?
We would be pleased to share more directly about our approach and transaction history. Our team would welcome a confidential discussion under NDA. Please feel free to reach out to us.
Is there any additional information to learn more about your market?
Here are some white papers on our market authored by members of our team:
Secondaries Have Become Primary (D. Wachter)
When Worlds Collide – The Convergence of Primaries and Secondaries Through GP Led Transactions (T. Miller and K. Stitch)