Why private credit’s newest opportunity may lie in what others need to sell
Pantheon’s Victor Mayer says credit secondaries are coming into their own as liability mismatches, leverage and gated vehicles create a new source of opportunity.
Pantheon’s Victor Mayer says credit secondaries are coming into their own as liability mismatches, leverage and gated vehicles create a new source of opportunity.
Once reserved for large institutions, secondaries are now being adopted by advisers seeking greater transparency, diversification, and flexibility in private equity portfolios.
For advisers building private equity allocations, secondaries offer liquidity, faster deployment and a more diversified starting point.
Tap into the big structural shifts shaping the next decade, private equity secondaries, commercial real estate debt, demographic-driven real estate and infrastructure powering AI, energy transition and reshoring.
Private equity (PE) offers attractive return potential, diversification, and access to company-level growth not captured in public markets. However, the traditional structure of primary PE funds introduces challenges such as long capital deployment timelines, limited liquidity, and significant blind pool risk. Enter the secondaries solution.
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.
The group says tackling liquidity and accessibility barriers are key to the success of its private equity secondaries fund. Researcher Lonsec agrees, recently giving the fund a ‘Recommended’ rating on its platform.
Secondaries aren’t new, but the growth of private markets in the last decade has propelled the assets into the mainstream as investors from different pools of capital line up the benefits.