What is one of the significant trends in GP-led transactions since 2017?

Over the past several years, GP-led transactions have indeed become increasingly prominent in the secondary market. This trend is significant because GP-led deals offer general partners (GPs) a means to manage their portfolios actively and provide liquidity to investors. As a result, these transactions have evolved to support a diverse range of strategies and investment sizes, allowing GPs to restructure funds, extend investment horizons, and provide existing limited partners (LPs) with exit options while bringing in new LPs.

The increase in the percentage of GP-led transactions within the secondary market indicates their growing acceptance and the sophistication of LPs in navigating these opportunities. Investors recognize the value in these transactions for accessing high-quality, managed assets while enabling GPs to secure the capital needed for further investment or to realign fund strategies.

The other options do not reflect the realities of the market since 2017. For instance, while complexity can vary, GP-led transactions have generally not become less complex; rather, they often involve intricate negotiations and structures. Additionally, the assertion that GP-led deals primarily target small-cap investments is misleading, as these transactions can encompass various investment sizes and strategies, including large-cap firms. Similarly, claiming that their popularity has decreased is contrary to the observable trend of increasing activity