Foley & Lardner LLP partner Brian Wheeler commented in the Pitchbook article, “GP-led secondaries to end 2024 with new record,” assessing the prospects for dealmaking in the space heading into 2025.
“I think [secondaries] will continue to grow, but it’s still just scratching the surface of the liquidity that’s really needed,” Wheeler explained, adding that some private equity firms lack sufficient personnel to improve the operations of their portfolio companies and prefer to sell those assets to realize returns for investors.
“There are NAV loans; there are secondary funds or LP-led exits—but you still have a huge backlog of companies looking to exit,” Wheeler added.
