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Why discounts don’t matter

Why discounts don’t matter

Thank you to all who attended our private equity webinar on 1 October 2024, ‘Why discounts don’t matter’.

Through our discussion with Paul Newsome, Ralph Büchel, Anton Steidl and Nick Kavanagh, we found that headline discounts hardly say anything about a secondary deal. Indeed, there are many other factors which are important when executing a high quality secondaries strategy including the following:

  1. Be an insider. It’s very important to have a deep understanding of what you are buying. Secondaries investors who have a primary platform and existing GP relationships have a key advantage.

  2. Don’t shy away from concentration. Concentration and quality often go hand in hand and it requires a team who can do true bottom up underwriting.

  3. Focus on what investors want: DPI generation and consistent returns. Discounts can be nice window dressing, but the real metrics for investors are other things:  quick deployment, DPI generation, low volatility and consistent returns across a very dynamic and rapidly changing secondary market environment.

The full webinar can be made available upon request. Please get in touch with us at clients@unigestion.com

We look forward to seeing you again for our next webinar!

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