With endowments like Yale and Harvard considering selling some or all of their private equity holdings to the secondaries market for enhanced liquidity, our Founding Principal and Managing Director Craig Robson weighed in on how advisors should be approaching PE secondaries.

Increased turnover in private equity has expanded the opportunity set, and Regent Peak continues to have strong conviction in the role that secondaries can play in an overall portfolio construct.

However, investors should fully understand what they own and why they own it. Craig notes that secondaries generally have different fee structures than public investments and typically may not be used as collateral sources for lending facilities. Advisors also need dedicated resources to diligence and monitor them—and must be prepared to educate clients on both the pros and the tradeoffs as part of a broader allocation strategy.

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