In this exclusive fireside chat, host Giovanni Amodeo sat down with Jeff Akers, Partner and Head of Secondary Investments at Adams Street Partners, to discuss the growth, innovation, and future of the secondary market. With over 20 years of experience, Akers shared invaluable perspectives on why secondaries are becoming a core allocation for investors and how the market continues to evolve.

Key Topics Discussed

1. The Role of Secondaries in Investor Portfolios

• Three Key Benefits (The “3 D’s”):
  • Discounts – Buying assets below NAV for immediate unrealized gains.
  • Duration – Shorter holding periods compared to traditional private equity.
  • Diversification – Access to mature, diversified portfolios with lower risk.
• From Tactical to Permanent Allocation: Secondaries are no longer just for J-curve mitigation—many now see them as a strategic, long-term holding.
• Attractive Returns with Lower Volatility: Historically strong risk-adjusted returns compared to primary private equity.

2. Market Innovation & Specialization

• Solving LP & GP Needs: The secondary market has evolved by offering tailored liquidity solutions (e.g., GP-led continuations, structured secondaries).
• Bifurcation of Buyers:
  • Mega-funds (focused on large-scale transactions).
  • Specialized players (niche strategies in private credit, infrastructure, or specific geographies).
• GP-Led Deals vs. LP Stakes:
  • Single-asset deals (higher concentration, longer duration, priced near par).
  • Multi-asset deals (more diversified, shorter duration, deeper discounts).

3. How to Assess GP-Led Secondaries (Avoiding Conflicts of Interest)

• Alignment of Interests:
  • Invest alongside trusted GPs with proven track records.
  • Ensure significant GP co-investment (beyond standard carry).
  • Structure performance-based economics (protect against underperformance).
• Data-Driven Underwriting:
  • Adams Street leverages 45 years of proprietary data to model risk/return.
  • Uses Monte Carlo simulations to compare deals against historical benchmarks.

4. The Future of Secondaries

• Market Growth: Expected to reach $300-400B in the next 5 years (driven by LP portfolio management, not just liquidity needs).
• More Institutionalization:
  • Larger funds and more specialized strategies emerging.
  • Increased talent inflow as secondaries become a “sexy” asset class.
• Decoupling from Exit Markets: Unlike traditional PE, secondaries are less dependent on IPO/M&A activity—growth is fueled by LP demand for flexibility.

Final Takeaways

• Secondaries are maturing from a niche liquidity tool to a core portfolio strategy.
• Data and GP relationships remain key differentiators in sourcing and underwriting.
• The market will continue expanding, with more specialization and innovation in structures.

Key timestamps:

00:07 Introduction to the Fireside Chat
01:29 Importance of Secondaries in Investment Portfolios
04:06 Innovation in the Secondary Market
05:26 Market Specialization Trends
09:04 Aligning Interests with General Partners
12:14 Single vs. Multi-Asset GP Led Deals
14:09 The Role of Data in Investment Decisions
18:35 Key Data Points for Investment Analysis
20:00 Evaluating Manager Quality
21:47 Market Trends and Specialization
22:50 Correlation Between Secondary Activity and Market Exits
24:01 Recruitment Trends in Private Equity
25:08 Closing Remarks and Insights