Private Equity Secondaries
Access private equity secondary opportunities with Mirai Capital.
Access Private Equity Secondary Opportunities with Mirai Capital
Mirai Capital provides access to carefully selected private equity secondary opportunities across the private markets. We identify attractive transactions and evaluate the underlying assets. In addition, we assess fundamentals, valuations and potential risks.
Private equity secondaries can offer qualified and institutional investors access to established private market investments. They can also support portfolio diversification and create potential liquidity opportunities. Depending on the transaction, investors may also benefit from attractive entry valuations.
What Are Private Equity Secondaries?
Private equity secondaries involve the purchase or sale of existing interests in private equity funds, portfolios or private companies.
Unlike a primary private equity investment, a secondary transaction involves an existing investment position. As a result, investors may have greater visibility into the underlying portfolio. They may also have access to more information about its investment history.
Secondary transactions can take several forms. For example, they may include LP-led transactions, GP-led transactions and direct secondary investments.
Private Equity Secondary Opportunities
Mirai Capital focuses on identifying and evaluating selected opportunities within the private equity secondary market.
Depending on the transaction, opportunities may provide exposure to:
- Established private equity funds
- Mature private companies
- Diversified private market portfolios
- Secondary fund interests
- Direct interests in private companies
- GP-led continuation structures
Each opportunity is assessed individually, with attention to the underlying assets, transaction structure, valuation, remaining investment period and potential exit scenarios.
Why Consider Private Equity Secondaries?
Private equity secondaries can offer several potential advantages for qualified investors.
Access to established investments
Investors may gain exposure to companies and portfolios that have already been developed by experienced private equity managers.
Potentially attractive entry valuations
Secondary interests are often acquired at negotiated prices relative to reported NAV or other valuation measures.
Portfolio diversification
Secondary opportunities can provide exposure across different companies, sectors, strategies and investment vintages.
Greater visibility
Compared with a new private equity commitment, secondary investments can provide more information about the underlying portfolio and its performance.
Potential liquidity opportunities
The secondary market allows existing investors to sell positions before the underlying fund reaches the end of its investment life.
How Mirai Capital Evaluates Secondary Opportunities
Key Factors in Evaluating Secondary Opportunities
- Quality of the underlying companies and assets
- Fund performance and historical distributions
- Current and expected valuations
- Remaining unfunded commitments
- Expected timing of future distributions
- Fund maturity and remaining investment period
- Portfolio concentration
- Sector and geographic exposure
- Debt levels
- Transaction structure and terms
- Potential exit opportunities
The objective is to understand not only the reported value of an investment, but also the potential value and risks associated with acquiring it through the private equity secondary market.
Private Equity Secondary Transactions
Secondary transactions require careful analysis because private market investments do not trade on transparent public exchanges.
Mirai Capital approaches each opportunity with a focus on understanding the underlying assets, transaction terms, valuation and potential return profile before presenting an opportunity to qualified investors.
Where appropriate, the analysis also considers the difference between reported NAV and the price at which an interest may actually be acquired.
Private Equity Secondaries for Qualified Investors
Private equity secondary investments are generally suited to qualified, professional and institutional investors who understand the risks associated with private markets and illiquid investments.
Mirai Capital can help investors identify and evaluate selected secondary opportunities based on their investment objectives, risk considerations and portfolio strategy.
Explore Private Equity Secondary Opportunities with Mirai Capital
If you are looking for private equity secondary opportunities and would like to discuss potential investments, contact Mirai Capital to learn more about available opportunities.
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