Good morning, dealmakers. MK Flynn here with the Wire.
Secondaries have been huge this year, as PE firms seek liquidity in a tough exit environment.
Today, we’re featuring a wide-ranging interview with Verdun Perry, who runs Blackstone Strategic Partners and has been investing in secondaries for 23 years. He’s seen the market go from roughly $1.3 billion in 2000 to about $130 billion in 2023.
Read the interview with PE Hub’s Rafael Canton to find out if Perry thinks that growth will continue in 2024.
In deal news this morning, KKR just unveiled a new medtech platform.
Finally, a recent survey of CEOs suggests more clouds may be on the horizon for dealmaking in 2024.
Let’s start with a quick look at the deal of the day.
Devices and diagnostics
KKR, along with some partners, have created a new medical technology platform called Maverix Medical, reports Irien Joseph. Maverix will be based in Menlo Park, California, and managed by Ajax.
Subscribers to the premium version of the Wire may discover details about the deal, including who KKR partnered with on it.
Hold on
The secondaries market has grown tenfold in the 23 years since Verdun Perry began working in it. Today, funds focused on secondaries account for about a fifth of PE fundraising, and private equity firms are increasingly turning to secondaries as they seek creative paths to liquidity in the dealmaking downturn. But that wasn’t always the case.
Perry entered the secondaries market back in 2000 when Credit Suisse acquired Donaldson, Lufkin & Jenrette, which he had joined earlier in the year. After the acquisition, Perry began working for Credit Suisse’s Strategic Partners. Then in 2013, Blackstone bought Strategic Partners from Credit Suisse.
In 2013, Strategic Partners had $9 billion in assets under management. That figure has skyrocketed to $68 billion currently. And Perry leads the group as global head of Blackstone Strategic Partners.
As part of PE Hub’s ongoing series of Q&As with private equity thought leaders, reporter Rafael Canton spoke with Perry about a wide range of topics, including why secondaries are so compelling in today’s market.
Upgrade to the premium version of the Wire to read the in-depth Q&A, which also includes Perry’s insights on making the PE industry more diverse.
And for more of PE Hub’s ongoing series of Q&As with private equity thought leaders, see:
Accenture’s Jay Scanlan: Deal partners request more ideas, increased support from operating pros
NYSE’s Michael Harris optimistic about IPOs in 2024
Blackstone CTO John Stecher: ‘Generative AI can enhance private equity dealmaking’
Uncertainty principle
We’ve been hearing a lot of optimism about dealmaking in 2024, but I saw a troubling sign in EY’s Q4 2023 CEO Outlook Pulse Survey.
To find out what concerned me, upgrade to the premium version of the Wire.
What’s your outlook for 2024? I’d love to hear from you at [email protected].
Obey Martin Manayiti is up next with Friday’s Wire, and I’ll be back on Monday.
All the best,
MK
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