In a recent fireside chat, Paul Robine, Founder & CEO of TR Capital, shared his insights on the evolving secondary market in Asia. With 15 years of experience in the industry, TR Capital has established itself as a Pan-Asian champion in the secondary space.

Key Takeaways:

• Secondary Market Evolution: The secondary market in Asia has matured, with a shift from traditional LP secondaries to active secondaries, characterized by more complex transactions, such as GP-led deals and secondary directs.
• Growing Opportunity: The unrealized value detained by private equity funds in Asia that are 6 years old or more is expected to reach $950 billion, creating a significant opportunity for secondary players.
• Talent Acquisition Challenges: Attracting top talent in the secondary space remains a challenge due to the need for specialized skills and regional expertise.
• Advantages of Standalone Business: TR Capital’s focus on secondary investments in the APAC region allows for a more targeted approach and better execution of its strategy.
• Pricing and Quality Assets: The company’s investment approach prioritizes high-quality assets, with a focus on underwriting and direct investment background, rather than relying on steep discounts.
• Reputation and Partnership: TR Capital positions itself as a liquidity provider and partner to GPs, offering regular liquidity solutions and building long-term relationships.
• Industry Consolidation: The secondary market is expected to see increased consolidation, with larger asset managers acquiring secondary firms or teams, particularly in the US and Europe.
• Sector Specialization: There may be a trend towards sector specialization in the secondary space, with firms focusing on specific areas, such as healthcare.

Key timestamps:

00:08 Introduction to the Fireside Chat
02:13 Evolution of the Secondary Market in Asia
05:02 Growth of Secondary Opportunities
06:37 Challenges in Talent Acquisition
08:20 Focus on Active Secondaries
11:16 Market Dynamics and Seller Motivations
15:40 Reputation and Role in the Secondary Market
18:14 The Future of IPOs and Secondaries
20:17 The Evolving Ecosystem of Secondary Markets
23:07 Consolidation Trends in the Secondary Market
25:44 Growth Projections for Investment Strategies
26:25 Navigating Early Stage Investments
27:26 Shifting Focus to Established Businesses