PSG - What is Probitas Secondaries Group?
Most alternative investments are structured as private partnerships or direct investments in companies that are not readily marketable. Investors in these interests often seek liquidity to achieve the following:
- Maximize portfolio returns
- Rebalance portfolio sector weightings
- Create administrative efficiency by trimming non-core or stub positions
- Complete an orderly exit from alternative investments
- Capitalize on market pricing anomalies
- Recycle strategic capital
- Maintain overall allocation guidelines
Secondaries Group includes the application of strategies and structures that allow investors to reduce exposure to existing investments. Secondaries Group, properly executed, is tailored to achieve the specific goals of each investor.
PSG techniques include the following:
- Limited or broad-based portfolio auctions
- Individual position sales
- “Primary secondaries"
- Stapled secondaries and special fundraising options for fund sponsors
- Pre-defined fund-of-funds or public vehicles
- Synthetic sales such as total return swaps
- Portfolio securitizations (also referred to as Collateralized Fund Obligations)
PSG has significant experience and expertise in offering advice to parties exploring any of these or other hybrid liquidity approaches.
