Institutional LPs, driven by the evolution of their own overall portfolio strategy and composition, may from time to time wish to sell one or more specific fund commitments on a secondary basis. Fund GPs will often play a role in facilitating such transactions, but the marketing effort required is significant. Several “traditional” players have long been active in the secondary market, and an increasing number of institutional investors are participating on the buy-side of secondaries. Touchstone can assist GPs in using such sales as opportunities to enhance their LP base. Our extensive realtionships and database allows us to market secondary interests to a mix of both secondary funds and other institutional LPs.
Co-investments can be an important tool in attracting primary LP commitments. We provide an important service identifying prospective LP investors who may be most appropriate to invest with a GP in co-investment opportunities. We strive to ensure that the GP receive appropriate economic benefit from these LP co-investors—whether that benefit is structured as “stapled” with a primary commitment, on a standalone basis, or some combination of the two.