At times, a fund may need to divest all or parts of its remaining assets.
We have a solid track record in direct secondaries, including in the toughest segments of the market ie portfolios of pre-revenue life sciences investments.
Market conditions have dramatically changed in the direct secondaries segment over the past few years.
The choice of the right advisor is crucial in direct secondaries transactions, which are inherently labor intensive, with a high execution risk.
In today’s market, buyers are fairly well identified, and are known to most advisors. The added value of the sell-side advisor is rather to
- make sure that the portfolio at hand can be sold at a price that is acceptable to the sellers;
- properly position the transaction to maximize value;
- produce a flawless documentation to avoid misunderstandings on types and numbers of shares as well as co-investors’ rights and obligations, which can cause a deal to fall apart post-LOI;
- run an optimal process