Primary Market Background

Secondary Funds

  • Over the past several years LP allocations have increased to the secondary market segment as LP's have recognized that secondary funds have developed a strong track record of generating high returns with a accelerated distributions and small J-curves, that are often more attractive than primary funds.
  • While the amount of capital that can be allocated to secondary funds is relatively limited (the Secondary market at its peak can absorb a relatively modest amount of $20-25 Bln annually globally), an increased number of LP's are targeting to invest in this market segment, which creates a more complex and broader environment for GP's fundraising in this segment.
  • The support of a placement advisory with a strong background, track record executing transactions in the secondary market and a broad and deep knowledge of the LP's focusing on the secondary segment as Azla has, provides a significant competitive advantage to a GP fundraising in the secondary segment
  • Azla is in a constant dialogue with LP's regarding their interests in the secondary market on both Fund and direct level and has strong relationships with many secondary GP's, so is very well placed to work with secondary fund managers with a differentiated strategy compelling track record.

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