Master PE Secondaries from Elite Pros

In this opening module, learners are introduced to the course structure, objectives, and key topics that will be covered throughout the course. The instructor provides an overview of the secondaries private equity market, its significance, and the skills learners will develop. This session sets the stage for an engaging and insightful learning journey, equipping participants with a roadmap for success in mastering secondaries private equity.

This module introduces secondary private equity, where Limited Partners (LPs) sell their stakes in private equity funds to secondary investors. We explore the structure of private equity funds, the roles of General Partners (GPs) and LPs, and the reasons LPs seek liquidity, such as portfolio rebalancing or market downturns. The module covers how secondary transactions work, including the approval process from GPs, and the importance of secondary markets in providing liquidity for long-term private equity investments.

This module covers the key benefits of secondary private equity investing, including J-curve mitigation, reduced blind pool risk, potential discounts, and immediate diversification. We explore how secondary investors gain earlier distributions and higher IRRs by entering funds later, while also understanding challenges like fee-on-fees and limited upside compared to primary investing.

This module dives into the mechanics and strategies of GP-led secondaries, exploring their structure, key drivers, and market dynamics. Learners will examine various transaction types, including continuation vehicles, fund financing, strip sales, and tender offers, alongside their illustrative structures. The module also provides insights into the secondary investor universe, covering both equity and debt investors, offering a comprehensive understanding of GP-led secondary transactions in private equity.

This module summarizes the processes and characteristics of GP-led and LP-led secondary transactions. Through illustrative examples, learners will explore a typical LP-led transaction and a single-asset continuation vehicle in a GP-led process, gaining a clear understanding of the distinctions and key steps involved in each approach.

This module explores secondary markets beyond traditional private equity, including infrastructure funds, private credit secondaries, and GP stakes. Learners will examine innovative financing solutions such as preferred equity, NAV financing, and GP-level financing. The module highlights how these markets facilitate liquidity, support fund investments, and offer access to management fees and carried interest.

This module provides a comprehensive guide to the interview process for secondaries private equity roles. Learners will gain insights into typical interview rounds, including non-technical discussions with sample questions and answers, as well as technical questions focused on LP-led and GP-led transactions. The module equips candidates with the knowledge and frameworks needed to excel in interviews for secondaries private equity firms.

This module focuses on an LP-led secondary deal, providing an in-depth case study of a mid-market buyout fund being sold by a pension fund. The module guides participants through the process of evaluating such a transaction, including creating a detailed financial model that assesses potential returns and the GP’s economics. Learners will prepare an Investment Committee memo, outlining the key investment thesis, risks, and critical diligence questions for the GP. This module includes a 5-hour Excel modeling walkthrough, emphasizing practical tips and tricks for mastering secondary deal modeling. By the end, this in-depth case study will equip participants with the skills necessary to assess and execute LP-led secondary investments.

This module includes a hands-on case study focused on a GP-led secondary transaction involving a continuation vehicle acquiring a pasta manufacturer from an existing fund. Learners will build a detailed financial model from scratch using provided assumptions, with over five hours of guided walkthroughs covering modeling techniques, tips, and structuring best practices. The case also includes the preparation of an Investment Committee (IC) memo, requiring learners to synthesize an investment thesis, assess risks, and make a recommendation. This practical module bridges theory and application, reinforcing key concepts through real-world analysis. By the end, participants will have a strong grasp of how to evaluate, model, and present GP-led secondary deals.