Secondary Solutions in Asia: Navigating Regulatory Clampdowns

June 09, 2023 | BY

Susan Mok

Geoffrey Chan and Brian Wong of Skadden, Arps, Slate, Meagher & Flom highlight the recent U.S. Securities and Exchange Commission (SEC) developments regarding secondaries transactions and considerations that private equity general partners (GPs) should bear in mind when contemplating liquidity solutions in the PE secondary market

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Summary

  • Asia has seen strong growth in the demand for bespoke secondary solutions over the last 12 months and this is expected to continue in 2023 and in the near future, coinciding with increased regulatory and investor scrutiny
  • The SEC acknowledges the potentially beneficial nature of GP-led secondaries, which have the potential to be viable liquidity alternatives for underlying funds
  • A primary source of concern for the SEC when it comes to GP secondaries solutions is the actual and potential conflicts of interest