Secondaries Are No Longer a Liquidity Tool. They’re a Private Equity Strategy with Adrian Siew, Rothschild & Co

In this episode of The Private Equity Podcast, Alex Rawlings is joined by Adrian Siew, Managing Director at Rothschild & Co and co-leader of its GP Solutions practice.Adrian explains why continuation vehicles have become an increasingly important part of the private equity market and how firms can use them to generate liquidity, retain high-performing assets and strengthen relationships with investors.The conversation explores the rapid growth of the secondaries market, the pressure created by longer hold periods and slower exit activity, and why continuation vehicles should be considered alongside traditional exit routes rather than treated as a last resort.Adrian also outlines the characteristics of a strong continuation vehicle, including a compelling investment narrative, attractive return potential, meaningful GP alignment, LPAC support and a clear path to exit.Key HighlightsWhy continuation vehicles have experienced significant growthHow dedicated secondary capital has accelerated adoptionWhy many leading private equity firms have completed multiple CV transactionsThe benefits of providing liquidity while retaining high-conviction assetsWhy a continuation vehicle should not be the option of last resortHow slower distributions have affected LP investment programmesThe role of secondaries in portfolio optimisation and capital recyclingHow CVs can strengthen sponsor and LP relationshipsThe importance of transparency, optionality and LPAC engagementThe key indicators of a high-quality continuation vehicleCareer opportunities within the expanding secondaries marketTimestamps00:00 – Introduction to Adrian Siew and Rothschild & Co’s GP Solutions practice 00:59 – Why continuation vehicles are growing so quickly 01:29 – The evolution of fund restructurings into continuation vehicles 01:58 – Growth in dedicated secondary-market capital 02:25 – Increasing adoption among leading private equity firms 02:53 – Benefits for GPs, LPs and management teams 03:39 – The biggest mistake firms make when considering a CV 04:46 – Longer hold periods, slower exits and fundraising pressure 05:16 – Why LPs are manufacturing their own liquidity 06:14 – Restarting the private markets capital flywheel 06:43 – The contribution of CVs to LP distributions 07:12 – Secondaries as a strategic portfolio-management tool 08:39 – Portfolio optimisation and greater flexibility for LPs 09:37 – How continuation vehicles affect sponsor-LP relationships 10:05 – Giving existing LPs liquidity and rollover optionality 11:03 – What separates a good CV from a bad transaction 11:23 – Building a credible investment narrative 11:52 – Ensuring sufficient upside remains in the asset 12:21 – GP alignment and commitment to the next phase 13:18 – LPAC support and establishing a clear exit strategy 14:10 – Adrian’s recommended reading 14:39 – Careers in secondaries and how to contact Adrian 15:35 – Closing remarksRaw Selection partners with Private Equity firms and their portfolio companies to secure exceptional executive talent. We focus on de-risking executive recruitment through meticulous search and selection processes, ensuring top-tier performance and long-term success.Upcoming Webinar:Join Alex Rawlings on 18 August at 3:30 PM BST for How Top Private Equity Firms Run Their Executive Hiring Process.Discover how leading firms define roles, assess candidates and build a more effective executive hiring process.Register here: https://us02web.zoom.us/meeting/register/650UiYAJQ9CWzPkIUGXmrg#/registration🔗 Connect with Alex Rawlings on LinkedIn https://www.linkedin.com/in/alexrawlings/ 🌐 Visit Raw Selection www.raw-selection.com