Committed Capital | Unlocking Value: GP-Stake Sales and Seeding Transactions
November 26, 2024
Private equity firms are increasingly looking at strategic options both for their business and fundraising, including GP-stake sales and seeding transactions. What factors do GPs consider when evaluating these options? In this episode, Dechert’s Sam Kay leads a discussion with Rede Partners’ Magnus Goodlad and New Catalyst Strategic Partners’ Demetrius Sidberry on how the market is developing, how businesses are valued, the different methodologies and investment structures for either a GP-stake sale or a seeding arrangement, and more.
Speakers:
Magnus Goodlad
Partner, Capital Solutions
Rede Partners
Demetrius Sidberry
Managing Director
New Catalyst Strategic Partners
Sam Kay
Partner, Private Funds
Dechert LLP
Key Takeaways
- Motivations for GP-stake sales and seeding transactions include succession planning, capital raising, and long-term growth.
- Regional variations and market dynamics exists between North America, Europe, and Asia.
- The value of emerging managers, with a focus on strategy scalability and competitive positioning, is key to value assessment.
- Transaction structures, such as equity and debt, and governance arrangements are preferred by LPs.
- Ensuring internal alignment, choosing long-term partners, and maintaining a strategic, firm-building mindset remain fundamental to a successful transaction.
Related Professionals
