Goodwin: Why Innovation Is Core To The Secondaries Market (Secondaries Investor)

The secondaries industry has always been solutions-focused. That continues to be the case as the market expands rapidly in both breadth and depth, say Goodwin partners Ravi Chopra and Jacqui Eaves in an interview with Secondaries Investor. "With the influx of capital into private markets, we are witnessing a real shift in how portfolios are managed. It's not just about offloading those end-of-life fund positions anymore. These days, LPs are taking a much more hands-on approach, even considering the sale of newer fund interests as part of their strategy. What is particularly interesting is the rise in alternative deal structures. Instead of simply selling outright, investors are exploring options like preferred equity and NAV financing. These solutions are gaining traction because they give LPs the best of both worlds: the chance to unlock some immediate liquidity while also hanging on to a slice of that future upside. It is a testament to the secondaries market's longstanding reputation for adaptability and innovation – qualities that have really come to the fore as the landscape continues to evolve," says Jacqui Eaves. Ravi Chopra adds, "There is a bit of dance that happens. When people first go into a process, they conduct some market testing to get a sense of appetite. If deals are going to fail or be postponed, typically it will happen at that early stage. Sometimes deals may also slow down after that initial market testing, however, and the most common reasons for that are go-forward economics and pricing."