Private equity secondaries benefit from forced sales.
Forced selling of high-quality private assets by large institutions due to endowment tax uncertainty, liquidity needs, and retail investor impatience created attractive secondary market opportunities. The team has been a net buyer in private equity secondaries over the last two years to capture discounted assets.
Traditional energy equity offers compelling value.
Traditional oil and gas equity investments became compelling as capital fled the sector for non-economic reasons such as ESG pressures and governance constraints, causing fundraising difficulties. The team increased exposure to private energy equity a couple of years ago, favoring equity over credit because improved financing conditions made credit less attractive.