Key Takeaways
- • Golding Capital Partners has generated a 30% IRR across its 10+ year operating history in private equity secondaries without recording any investment losses, significantly outperforming its stated target of 15% net IRR for the Golding Secondaries 2022 Fund.
- • Golding Secondaries 2022 Fund closed its first tranche at €170 million in September 2023, with a €500 million hard cap targeted for final close in 2024, positioning the Munich-based firm as a significant player in pan-European secondary PE markets.
- • The firm's secondary strategy focuses on acquiring PE investments targeting mid-market SMEs with EBITDA of €2–15 million, leveraging the risk mitigation benefits of secondaries including elimination of blind pool risk and J-curve effects inherent to primary PE investments.
- • Secondary PE funds managed by Golding have demonstrated 35% yields despite lower risk profiles compared to primary funds, as they acquire already-selected underlying assets and avoid the less profitable early-stage investment phases characteristic of primary commitments.
Summary
Golding Capital Partners, a Munich-based asset management firm specializing in private capital transactions, has established a robust track record in private equity secondaries that substantially exceeds industry benchmarks. According to Richard Wilmes, Managing Director and Head of Secondaries at Golding, the firm has operated for more than 10 years in the secondary sector without recording losses on any investment, generating an aggregate IRR of approximately 30%—a figure that nearly doubles the stated net IRR target of 15% for its flagship Golding Secondaries 2022 Fund.
The firm's secondary strategy addresses structural inefficiencies in traditional primary PE investing. As noted by Laura Tardino, Head of Golding's Milan Office, secondary PE funds have generated yields of 35% while maintaining inherently lower risk profiles than primary vehicles. This outperformance stems from the secondary model's elimination of blind pool risk and the J-curve effect, the extended period before primary PE investments generate meaningful returns. Secondary investors acquire positions in already-selected underlying businesses or assets, thereby avoiding the less profitable initial investment phases that characterize primary PE commitments.
Golding Secondaries 2022 Fund achieved a first closing of €170 million in September 2023, ahead of a €500 million hard cap targeted for 2024. This fund represents the firm's second dedicated secondary PE vehicle, following its earlier 2022 fund, which attracted €280 million in commitments for pan-European secondary PE transactions. The firm's investment focus remains concentrated on acquiring PE stakes in mid-market SMEs with EBITDA ranging from €2 million to €15 million, a segment where secondary transactions offer compelling entry points and value creation opportunities through operational improvements and strategic repositioning of underlying portfolio companies.
The firm's secondary strategy addresses structural inefficiencies in traditional primary PE investing. As noted by Laura Tardino, Head of Golding's Milan Office, secondary PE funds have generated yields of 35% while maintaining inherently lower risk profiles than primary vehicles. This outperformance stems from the secondary model's elimination of blind pool risk and the J-curve effect, the extended period before primary PE investments generate meaningful returns. Secondary investors acquire positions in already-selected underlying businesses or assets, thereby avoiding the less profitable initial investment phases that characterize primary PE commitments.
Golding Secondaries 2022 Fund achieved a first closing of €170 million in September 2023, ahead of a €500 million hard cap targeted for 2024. This fund represents the firm's second dedicated secondary PE vehicle, following its earlier 2022 fund, which attracted €280 million in commitments for pan-European secondary PE transactions. The firm's investment focus remains concentrated on acquiring PE stakes in mid-market SMEs with EBITDA ranging from €2 million to €15 million, a segment where secondary transactions offer compelling entry points and value creation opportunities through operational improvements and strategic repositioning of underlying portfolio companies.
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