|
|
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!

Related insight

Unigestion has announced a strategic partnership with Kepler Cheuvreux to establish a joint asset management company specialising in quantitative strategies for public equities.

[…]

2025 is likely to be a better year for private equity. Our exit pace continues to buck the market trend. Secondaries will continue to move towards being a core holding while the popularity of open-ended funds will grow

[…]

Once written off as dead money, Chinese banks have staged a quiet comeback—emerging as some of the market’s most resilient income plays. As China battles economic headwinds and investor confidence wavers, these state-backed giants are delivering strong dividends and unexpected stability. With limited alternatives, local investors are piling in, fuelling a trend that offshore sceptics never saw coming.

[…]

In this video, Unigestion’s Chairman, Bernard Sabrier shares his insights on investment with Khaled Abou Zahr, CEO of PE Forum.

[…]

Subscribe