Where Does Competitive Edge Exist In the Secondary Market?

Key Takeaways

• Competitive edge still exists in an evolving secondary market, dependent on a buyer’s positioning and access
• The benefits of an existing primary platform and associated relationships are difficult to replicate and provide select buyers potential access and diligence advantages
• Recent volatility and continued uncertainty are expected to favor targeted secondary buyers who have a bias towards quality and returns driven by fundamentals
• Small- and mid-market funds possess attractive characteristics for secondary buyers that we believe should persist
• Mid-sized secondary buyers are operating in an undercapitalized sub-segment of an already undercapitalized market, resulting in attractive competitive dynamics

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