In this insightful fireside chat, hosted by Giovanni Amodeo, Michal Lange, a partner at Astorg, delved into identifying niche opportunities within private equity and secondary investments. Here’s an overview of the key topics discussed:

1. Michal’s Role and Background at Astorg

Michal shared her journey at Astorg, starting in 2016 in the flagship buyout investment team, where she was involved in high-profile transactions. In 2023, she transitioned to co-lead a new division called GP Equity Solutions, focused on secondary investments.

2. Astorg’s Expansion and Investment Focus

• Astorg, with €22 billion in assets under management, focuses on B2B niche leaders, primarily in Europe. The firm operates three main business units:
• The Flagship Program: Investing in companies with an enterprise value of over €500 million.
• A Mid-cap Strategy: Targeting companies valued between €100 million and €500 million.
• The newly launched GP Equity Solutions, led by Michal, focuses on secondary market opportunities, offering liquidity solutions.

3. Opportunities in Secondary Investments and GP-Led Transactions

Michal highlighted the growing demand for liquidity in the private equity space, especially through single-asset continuation vehicles (CVs). With $150-300 billion in potential transactions over the next few years, the secondary market offers vast opportunities. The market saw a significant increase in transaction volume in 2024, with $17 billion in deals during the first half alone.

4. Scaling the GP Equity Solutions Platform

Michal discussed the scalability of the secondary investments platform at Astorg, emphasizing plans to expand assets under management, deal volume, and team size. With the increasing demand for liquidity in both LP- and GP-led transactions, Astorg is poised to grow its presence in this sector.

5. Personal Satisfaction in Secondary Deals

When asked about the satisfaction of working on GP-led transactions, Michal expressed that the rewards are similar to those in traditional buyouts. He noted the excitement and fulfillment that comes from building a new business and working on high-impact deals within the niche secondary market.

This fireside chat offered valuable insights into Astorg’s strategic approach to niche private equity and secondary investments, underscoring the vast growth potential in the sector.

Key timestamps:

00:09 Introduction to ION Influencers Fireside Chats
00:36 Michal Lange’s Background and Role at Astorg
01:09 The Launch of GP Equity Solutions at Astorg
02:24 Focus on GP-Led Secondary Market
04:57 Advantages of Being a Leader vs. Follower in Investments
05:57 Assessing Counterparties in Transactions
07:36 Determining the Right Timing for Transactions
09:01 Future Relationships with General Partners (GPs)
10:32 Incentivizing Team Members for Success
12:12 Attractiveness of the Secondary Market for Talent
13:52 Concerns About Technology and Automation
15:53 Differentiating Top Performers at Astorg
17:53 Educating the Market and Team Members
18:54 Direct Origination Approach in Secondary Market
20:32 Initiating Transactions with Sponsors
21:30 Market Development and Transaction Forms
22:07 The Role of Secondary Funds in Asset Management
23:06 Addressable Market for GP Led Products
23:38 Current Market Volume and Growth Potential
24:17 Future Outlook for Business Growth
25:37 Celebration of Success in GP Led Transactions
27:22 Closing Remarks and Acknowledgments