Ion Influencer Series – Fireside Chat
Chris Lawrence, Managing Partner of Labyrinth Capital Partners, on identifying a niche in secondaries investing.
In a recent fireside chat hosted by Giovanni Amodeo for the ION Influencers series, Chris Lawrence, Managing Partner & Founder at Labyrinth Capital Partners, delved into the intricacies of investing in private equity secondaries. With nearly three decades of experience in capital markets, Lawrence shared his journey and insights, particularly highlighting his tenure starting in 2008 at HQ Capital, where he navigated through the global financial crisis and its aftermath.
Lawrence discussed the evolution of private equity secondaries, emphasizing their role in providing liquidity during financial distress, similar to the 2008 crisis and the COVID-19 pandemic. He noted the cyclical nature of private markets and predicted continued growth in secondary market transactions, fuelled by an increase in private market distributions and institutional investments.
The conversation also covered the technical aspects of secondary transactions, including GP-led and LP-led deals. Lawrence explained the different strategies involved, such as continuation funds, strip sales, and fund restructurings, each catering to specific liquidity and portfolio management needs.
Moreover, Lawrence highlighted the importance of relationship capital and the nuanced understanding required to navigate the secondary market’s complexities. He stressed that while the market has matured, with intermediaries playing a crucial role, the fundamental dynamics of private equity secondaries still demand a deep, hands-on approach to managing risks and enhancing value effectively.
Looking ahead, Lawrence envisions Labyrinth Capital Partners continuing to innovate and adapt to the evolving landscape of private equity secondaries, focusing on niche strategies that offer unique opportunities for growth and investment.
