Secondaries

  1. Overview
  2. Dedicated Secondary Funds
  3. Investing Strategy
  4. Investment Criteria

 

FW Capital has an active secondary program that enables our team to invest in secondary transactions through dedicated secondary funds and our funds of funds program.

We purchase interests in venture capital, buyout, mezzanine and other private equity funds. FW Capital looks for opportunities to purchase primarily mature funds in which the general partner is a going concern.  Our dedicated team leverages its existing fund and direct investing capabilities in our secondary programs for both deal flow and due diligence.

WSL Partners, L.P. (2003)

This fund was established as a dedicated pool of capital to invest in secondary opportunities. $59.8 million in committed capital; purchased interests in 16 secondary transactions; fully invested.

FW Capital applies a thoughtful and consistent approach to secondary transactions.

  • Target funds in which FW Capital has access and insight through existing general partner relationships:
    • Funds managed by firms that are going concerns
    • Funds where the general partner may give us proprietary consideration due to our relationship
    • Funds from within our existing network
  • Target sellers with liquidity concerns where FW Capital has relationships:
    • Small Business Administration
    • Regional banks
    • Insurance companies
    • Pension funds
    • Corporations
    • Family offices
    • High net worth individuals
  • Target transactions where there is an appropriate risk/return balance:
    • Deal structure for downside protection
    • Deep value pricing for risk mitigation
    • Mature funds, at least 50% funded, to limit blind pool risk

In evaluating secondary opportunities, FW Capital's investment professionals review all aspects of a firm, including targeted investment industry, underlying company performance, partnership construction and the firm's market position. We ensure that the general partner is a going concern and has the proper incentives to maximize the value of the portfolio.  We target investments of $1 million to $20 million and have negotiated traditional secondary purchases as well as structured solutions to meet all party's needs.

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