Over the past year, one of the hottest topics within the private funds sector has been the surge in the use of GP-led liquidity solutions. Sponsors seeking to increase the liquidity of their private funds have a number of options available. These include: (i) GP-led secondary fund restructurings, (ii) preferred equity, (iii) NAV facilities, (iv) tender offers, (v) annex funds, (vi) cross trades, and (vii) amendments to the LPA. With so many choices in the market, it can be challenging to determine which is the most appropriate solution for any particular fund or scenario.
To assist with this, we have created Unlocking Paths to Capital: The GP-Led Liquidity Solutions Guide. The guide summarises and compares each of the solutions, focusing on the key legal, tax and regulatory considerations for each of them. This is designed to be a comprehensive resource for sponsors, investors and other market participants navigating this increasingly important aspect of the private funds world.