Key Takeaways
- • Netley Capital, a London-based private investment firm, launched its Tertiaries franchise with $315 million in committed, deployable capital, which it describes as the private equity industry's first pool of capital dedicated to buying secondaries stakes in secondaries funds.
- • Tertiary investing involves purchasing an investor's interest in a secondary private equity fund, whether a traditional secondary fund or a single- or multi-asset continuation vehicle.
- • Netley focuses on secondary funds whose underlying investments are mid- and large-cap global private equity buyout funds, and says its investor base includes blue-chip institutional investors and significant family offices.
- • Managing Partner Caspar Berendsen, formerly of Cinven for two decades, leads the franchise, and the first transaction is expected to close in the coming weeks.
- • Netley estimates tertiary transactions could eventually reach up to 10% of secondaries volume, comparable to the ratio of secondaries to primary activity today, with the secondaries market on track to surpass $200 billion in transactions this year.
Summary
Netley Capital, a private investment firm based in London, announced the launch of its Netley Capital Tertiaries franchise with $315 million in committed, deployable capital, according to a Business Wire release. The firm characterizes the vehicle as the private equity industry's first pool of capital dedicated to acquiring secondaries stakes in secondaries funds.
Tertiary investing refers to the purchase of an investor's interest in a secondary private equity fund. Such interests may sit in a traditional secondary fund holding many underlying positions in primary private equity funds, or in a single- or multi-asset continuation vehicle. Netley says demand for tertiary solutions is growing rapidly, driven by a sharp increase in activity in the secondary market. The firm focuses on secondary funds whose underlying investments are mid- and large-cap global private equity buyout funds. Its investor base comprises blue-chip institutional investors and significant family offices, and the first transaction is expected to close in the coming weeks.
Managing Partner Caspar Berendsen, who has overall responsibility for investing the franchise's capital, leads a team with experience across private equity primaries and secondaries, secondaries advisory and investment banking. Before founding Netley, Berendsen spent two decades at Cinven, where he built the firm's financial services franchise and launched its mid-market strategy. Berendsen said the firm reached its launch milestone in six months and described the strategy as one where "demand far exceeds supply."
Netley places the franchise within the broader private capital ecosystem, noting that the secondaries market is on track to surpass $200 billion in transactions this year. The firm estimates that tertiary transactions could ultimately reach up to 10% of secondaries volume, mirroring the approximately 10% ratio of secondaries to primary activity today. Berendsen said tertiaries provide early liquidity to investors in secondary funds in the same way secondaries developed to serve primary investors, and that the firm has built a strong deal pipeline.
Netley describes itself as the only manager of scale fully focused on tertiary transactions, offering liquidity solutions to counterparties on accelerated timetables. The figures and projections above are the firm's own statements and have not been independently verified.
Tertiary investing refers to the purchase of an investor's interest in a secondary private equity fund. Such interests may sit in a traditional secondary fund holding many underlying positions in primary private equity funds, or in a single- or multi-asset continuation vehicle. Netley says demand for tertiary solutions is growing rapidly, driven by a sharp increase in activity in the secondary market. The firm focuses on secondary funds whose underlying investments are mid- and large-cap global private equity buyout funds. Its investor base comprises blue-chip institutional investors and significant family offices, and the first transaction is expected to close in the coming weeks.
Managing Partner Caspar Berendsen, who has overall responsibility for investing the franchise's capital, leads a team with experience across private equity primaries and secondaries, secondaries advisory and investment banking. Before founding Netley, Berendsen spent two decades at Cinven, where he built the firm's financial services franchise and launched its mid-market strategy. Berendsen said the firm reached its launch milestone in six months and described the strategy as one where "demand far exceeds supply."
Netley places the franchise within the broader private capital ecosystem, noting that the secondaries market is on track to surpass $200 billion in transactions this year. The firm estimates that tertiary transactions could ultimately reach up to 10% of secondaries volume, mirroring the approximately 10% ratio of secondaries to primary activity today. Berendsen said tertiaries provide early liquidity to investors in secondary funds in the same way secondaries developed to serve primary investors, and that the firm has built a strong deal pipeline.
Netley describes itself as the only manager of scale fully focused on tertiary transactions, offering liquidity solutions to counterparties on accelerated timetables. The figures and projections above are the firm's own statements and have not been independently verified.
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