GP-led transaction activity analysis

GP-led transaction volume was nearly $15 billion in H1 2023, about a 22% decrease from H1 2022’s volume ($19 billion). Buyers saw better relative value acquiring LP fund interests making the bar for GP-led investments higher than previous years.
SACF as a share of GP-led deals decreased slightly to 47% from 48% in FY 2022, while MACF increased slightly to 44%. Overall, asset quality and valuations continued to be the focus for buyers as lower quality SACF and concentrated MACF transactions became more difficult to transact.
Tenders, direct, and asset strip sales continued to represent a small slice of the market. There is generally higher execution risk, particularly around tender offers and asset strip sales at times when discounts to NAV prevail, making them a less attractive investment alternative for buyers in H1 2023.

The average primary staple ratio for GP-led transactions in H1 2023 moved up slightly from 2.6 to 3.0 secondary dollars to every one primary dollar. Buyers had more opportunities to deploy capital elsewhere and thus were able to be more selective about meeting staple asks to get deals done.

Split by transaction value (purchase price plus unfunded) per respondent
Stapled primary capital refers to a commitment to a fund for the same GP. For every $3.0 of capital for secondary assets deployed, $1 of primary capital was committed in H1 2023 for transactions with a stapled element on average

GP-led transaction volume was nearly $15 billion in H1 2023, about a 22% decrease from H1 2022’s volume ($19 billion). Buyers saw better relative value acquiring LP fund interests making the bar for GP-led investments higher than previous years.
SACF as a share of GP-led deals decreased slightly to 47% from 48% in FY 2022, while MACF increased slightly to 44%. Overall, asset quality and valuations continued to be the focus for buyers as lower quality SACF and concentrated MACF transactions became more difficult to transact.
Tenders, direct, and asset strip sales continued to represent a small slice of the market. There is generally higher execution risk, particularly around tender offers and asset strip sales at times when discounts to NAV prevail, making them a less attractive investment alternative for buyers in H1 2023.

Stapled primary capital refers to a commitment to a fund for the same GP. For every $3.0 of capital for secondary assets deployed, $1 of primary capital was committed in H1 2023 for transactions with a stapled element on average

The average primary staple ratio for GP-led transactions in H1 2023 moved up slightly from 2.6 to 3.0 secondary dollars to every one primary dollar. Buyers had more opportunities to deploy capital elsewhere and thus were able to be more selective about meeting staple asks to get deals done.

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