In a recent ION Influencers fireside chat, Magnus Goodlad, Co-Head of Capital Solutions at Rede Partners, joined host Giovanni Amodeo to discuss the evolution of secondary investing, GP-led transactions, and the future of private markets.

Topics Discussed

1. The Evolution of Secondary Markets

• The secondary market has grown significantly, shifting from LP portfolio sales to a 50-50 split between LP and GP-led transactions.
• Landmark deals like Nordic Capital’s €2B+ continuation vehicle (2018) and PAI’s Froneri single-asset deal (2019) marked key milestones in Europe.
• GP-led transactions now focus on high-conviction assets rather than just extending fund life.

2. GP-Led Continuation Vehicles: Benefits & Challenges

• Why GPs Use Continuation Vehicles:
  • Provide liquidity to LPs while retaining strong assets.
  • Avoid selling to competitors when there’s more value to unlock.
  • Introduce additional capital for growth or acquisitions.
• Key Considerations:
  • Conflicts of interest must be managed—GPs must justify why they’re both selling and reinvesting.
  • LP support is critical—transactions must be franchise-building, not just liquidity solutions.

3. Assessing Manager Conviction in Secondary Deals

• Managers must clearly articulate their investment thesis—why hold rather than sell?
• Reinvestment by GPs (rather than cashing out) signals strong conviction.
• Performance track record and sector expertise are crucial for investor confidence.

4. NAV Financing & GP Corporate Advisory Trends

• NAV financing is growing, especially for fully invested funds needing additional capital.
• GP debt financing is rising as GPs face DPI challenges and reinvest in continuation vehicles.
• GP consolidation is increasing, with larger firms expanding into multi-strategy platforms.

5. The Future of Private Markets

• Consolidation vs. Emerging Managers:
  • Big firms dominate due to distribution power (e.g., wealth channel expansion).
  • Specialized boutiques can still thrive with unique edge and strong returns.
• Secondary Funds’ Growing Appeal:
  • Lower risk (investing in known assets).
  • Shorter path to liquidity compared to blind-pool primaries.

6. Talent in Private Markets

• Rede Partners looks for team players with problem-solving skills, deep market knowledge, and creativity in structuring deals.

Final Thoughts

The secondary market is maturing rapidly, with GP-led deals becoming a core liquidity tool. As private markets evolve, continuation vehicles, NAV financing, and GP consolidation will shape the next decade.

Key timestamps:

00:07 Introduction to the Fireside Chat
01:55 Overview of Reed Partners and Its Role
02:56 Milestones in Secondary Investing
05:41 Characteristics of GP Led Transactions
06:28 Evolution of Sponsor Education
08:46 Circumstances for Continuation Vehicles
10:20 Investment Case Quality and Manager Conviction
14:38 Complexities in Asset Management
15:24 Current Trends in Capital Solutions
19:01 Future of the Asset Management Industry
21:28 The Importance of Scale and Multi-Strategy Approaches
22:46 Assessing Entrepreneurial Potential in Emerging Managers
23:47 Building Momentum in Fundraising
25:22 Characteristics of Successful Capital Solutions Professionals
26:23 Conclusion and Closing Remarks