This transformation of the sector was discussed by our Founding Partner, Sergio García, at a new edition of Capital Letters, the financial forum organized by Harmon under the title Private Equity 2.0: Liquidity Alternatives in a Challenging Cycle. Secondaries and Continuation Funds.
Held in collaboration with FundsPeople, the event brought together leading industry experts to analyze how these structures are gaining prominence in an environment marked by more complex divestment processes, lower IPO activity and longer value-creation horizons.
During the discussion, García explained how the secondary market has evolved from transactions traditionally associated with complex situations toward structures focused on high-quality assets with further growth potential. “A few years ago, it was associated with distressed situations; now, practically half of transactions are GP-led and involve high-quality assets with growth potential and runway,” he noted.
As market conditions continue to evolve, LP-led secondary transactions are set to remain a key mechanism for rebalancing portfolios, deploying capital efficiently and navigating a private markets environment in which liquidity is increasingly valuable. The discussion coincides with the recent launch of the first secondary fund promoted by the Spanish asset manager, Qualitas Secondary Opportunities I. The vehicle, with a maximum size of €100 million, expands Qualitas Funds’ range of solutions to address financing needs throughout a fund’s life cycle.
The Founding Partner of Qualitas Funds emphasized that continuation funds make it possible to extend value creation in companies that have not yet exhausted their transformation potential. “When a company is in the midst of its value-creation curve, a continuation fund allows the fund to maintain its strategic exposure, while still offering partial liquidity to those investors who wish to receive it,” he said.
In this regard, he highlighted that these strategies have become a structural tool for private equity: “It is part of the market’s maturation and a key resource for managing mature assets, choosing the right exit timing, maximizing value and meeting investors’ capital requirements.”
The event, opened by Manuel Illueca, Chairman of the ICO, also brought together prominent experts such as Emilio Olmos, Partner at CVC Secondary Partners; Andrés Peláez, Senior Partner at MCH Private Equity; Miguel Echenique, Partner at AltamarCAM; Ramiro Iglesias, Co-Founder and CEO of Crescenta; Iñaki Arrola, Founder of K Fund; Norberto Arrate, Partner at Portobello Capital; Sonia Fernández, Partner at Kibo Ventures; Leopoldo Reaño, Managing Director at DEA Capital Alternative Funds; and Manuel Zulueta, CEO of DC Advisory.