Paul Elias

As credit secondaries scale and GP-led continuation vehicles gain traction, the secondaries market is splitting in two—buyers still demand discounts from LP sellers, while trophy assets controlled by GPs increasingly clear at par or better.

Institutional investors are pushing back against private equity’s biggest brands, steering capital toward emerging managers, lower-middle-market funds and secondaries vehicles that promise faster realizations and fewer fee surprises.

Despite those headwinds, LPs including ATRS, Illinois Municipal Retirement Fund and Tennessee Consolidated Retirement System re-upped.

The auto aftermarket has been attracting PE attention because it is fragmented and has steady cash flows.

The good news is that commitments have picked up recently along with valuations in the sector.