The ‘Godfather of PE Secondaries’ Timed His Exit Perfectly

He’s often dubbed the Godfather of private equity “secondaries” — the business of shifting stakes in buyout funds or buyouts themselves to new private-market investors. Hence Jeremy Coller’s $3.2 billion sale of his firm to Sweden’s EQT AB is a historic moment for the industry. As you might expect given the protagonists, it’s cleverly structured too.

Coller Capital was founded in 1990 and launched its first secondaries fund a few years later. For private-capital investors, a secondary deal lets them liquidate their position in a fund before its underlying holdings have been sold. For private equity fund managers, these sales can extend the life of an investment in a company that’s struggling to find a buyer or do an initial public offering.