PE Key Trends Blog

Palico in Focus - New Matching Service Makes Secondaries Accessible and Liquid

Sep 21, 2016 3:35:41 PM

Tags: Palico In Focus, V2

For Specialists and Non-Specialists

As the world’s first major dark pool of liquidity for the transfer of existing private equity fund stakes, Palico’s Secondaries Match - open to all limited partners after a successful test launch - marks a significant development for investing in the normally illiquid asset class. It promises to enhance investor ability to quickly buy into, or sell out of, existing private equity funds. Secondaries Match is designed to be useful for secondary specialists, occasional or first-time users of the secondary market, and investors whose primary focus is on evaluating classic fundraising opportunities.

Anonymity and Efficiency with No Pressure or Obligation to Transact

With just a few clicks on Palico’s easy-to-navigate site, investors securely offer for sale private equity fund stakes, without ever having to reveal their identity. Using the declared investment interests and wishlists of over 2,600 accredited investors from some 140 countries - all members of Palico - relevant buyers are notified via email when potential secondary investments are posted. All accredited limited partner members of Palico - whether basic or premium - are eligible to sign up for and receive these secondary sales alerts for free.

How Buyers Contact Sellers

Just a click on a link in an email alert gets the contact process rolling. Potential buyers agree to a success-based commission formula (paid only by buyers and only in the event of a successfully concluded transaction). Then they write via the platform to potential sellers about their offers. Only when potential buyers hit “send” is their identity revealed. Potential sellers review messages, consult sender member profiles on Palico, and choose whether or not to respond, with or without revealing their identity.

Taking it Offline

While potential buyers and sellers are free to carry on their correspondence via the platform, they can take the dialogue offline at any point after initial contact, facilitating due diligence and more complex negotiations.

Navigating Not Just Secondaries, but Private Equity’s Growing Diversity

As investors allocate rising amounts to PE, choice in fundraisings and secondaries is expanding. In an increasingly complex private equity universe, Palico’s online marketplace helps investors find the best funds and helps managers connect with the right investors. By bringing the world of private equity to desktops and smart devices, Palico makes the process of discovery and engagement easier.