Secondary Market
for Private Equity Fund Investments
Wm Sword & Co. has extensive experience in private equity and is in direct contact with investors committing capital to existing private equity funds by acquiring LP interests from current investors.
Transactions in the secondary market can take several forms:
- Sale of individual partnership interests
- Sale of an entire existing portfolio or selected funds within a portfolio
- A structured transaction that relieves the current owner of future capital calls in return for providing an agreed upon rate of return and negotiated priority in the distribution waterfall.
On behalf of the portfolio owner, Wm Sword & Co. employs an active, rigorous marketing process to develop interest among potential buyers / funders. The process is designed to:
- Uncover alternatives for the portfolio owner to evaluate
- Elicit interest level from counterparties
- Identify perceived strengths and weakness within the portfolio
- Establish pricing range
- Determine transaction terms (in addition to price)
- Facilitate a smooth process toward closing
Wm Sword & Co. has relationships at all of the major dedicated secondaries buyers, other market participants and also with many of the ultimate capital providers to this asset class:
- Corporate and public pension plans
- Endowments and foundations
- Financial institutions
- Family offices