Nick Miller prefers swimming with the tide. He definitely realised this when swimming around Hong Kong Island as part of a six-person relay team that set a world record for that feat; but in practice, it guides his private equity (PE) investment philosophy.
The secondaries market for private credit and private equity is finding growing appeal from an advice industry constantly searching for yield plays in the alternatives space.
Coller Capital scores Lonsec green light for secondaries fund
Secondaries provider Coller Capital has received a ‘Recommended’ rating for its Private Equity Secondaries Fund from Lonsec, one of Australia’s leading investment research firms, recognising the group’s growing influence in a local market where demand for access to global private equity markets is on the rise.
Private equity secondaries, which involve the buying and selling of existing stakes in private equity funds, have gained traction in Australia as investors seek alternative ways to diversify their portfolios.
The Coller Capital fund, which provides monthly liquidity and is designed with an institutional-grade portfolio structure, targets high-net-worth investors. Lonsec has recognised the fund for its design and responsiveness to the evolving needs of Australian investors.
Jake Elmhirst, Coller’s global head of private wealth secondaries solutions, said the firm sees this rating as an acknowledgment of its efforts to meet the growing demand for private equity solutions that offer both growth and liquidity.
“This recognition by Lonsec reflects the market’s growing interest in secondaries and the design of our fund to balance growth potential with liquidity,” Elmhirst noted.
The fund combines both limited partner (LP)-led and general partner (GP)-led secondary transactions, a structure that reflects the shifts happening in the secondaries market. For investors, this offers a way to access private equity without committing to the long-term lock-ups typically associated with primary private equity investments.
Credibility mark
The Lonsec rating is seen as an important indicator of the fund’s credibility and its fit for the Australian market. While private equity secondaries are still a relatively new concept for many investors in Australia, the growing interest suggests that more people are looking for ways to tap into these alternative investments.
David Hallifax, Head of Australia and New Zealand Private Wealth Distribution at Coller Capital (pictured), highlighted that the firm’s strategy focuses on addressing challenges like liquidity and access to private equity, which can be barriers for some Australian investors.
“The recognition from Lonsec suggests that our approach resonates with Australian investors looking for more flexibility and opportunities in the private equity space,” Hallifax said.
As private equity secondaries continue to gain ground in Australia, the Coller Capital Private Equity Secondaries Fund represents one of several investment vehicles designed to bridge the gap between traditional equity markets and more specialised private equity opportunities.
While the Lonsec rating helps to highlight the fund’s alignment with investor needs, it’s clear that the market for private equity secondaries is still maturing in Australia. The next few years could see further innovation and greater participation in this space as both institutional and private investors look for new ways to navigate the complexities of global markets.
