Services for Secondary Funds and Investors
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As is the case with most primary investors, Secondary Market buy-side participants prefer to leverage their due diligence on LP Interests and Direct Portfolio Investments to the greatest extent possible by increasing the transaction size by purchasing stakes from other shareholders in a Company or LP’s in a Fund with which they have recently completed a transaction.
However, most Secondary Funds have limited resources to identify, qualify and contact other potential sellers, or prefer the discretion of not identifying themselves as an active buyer in the market. As a result, they may frequently lose the opportunity to leverage their due diligence and accumulate LP positions in a Fund or a larger shareholder stake in a Direct Portfolio Investment in which they would like to increase their holding.
In response to this need, Azla offers Secondary Market buy-side participants a set of Discreet Customized Deal Flow Services that enables our secondary fund clients to achieve their accumulated position goals for their favored assets and GP Funds.
Azla’s Customized Deal Flow Engagement Process
We relieve our Secondary Fund Clients of the burden of identifying; qualifying
and contacting other potential sellers by having Azla Advisor professionals
assume that process internally in the following manner:
- Initially the Secondary Fund client provides Azla with the list of potential GP Funds or Direct Portfolio Investments in which they would like to accumulate a position and their pricing objective.
- Azla then leverages its broad, deep LP relationships, extensive databases, knowledge and understanding of the underlying Fund’s portfolio companies or the respective Direct Portfolio Company investments to effectively identify, qualify, and contact a wide range of potential qualified sellers in an efficient, discreet fashion that does not identify the potential buyers.
- Azla can subsequently set pricing expectations for the seller and facilitate the closing of a customized, proprietary transaction.
Portfolio Company Management and Monitoring Services
In the event that a Secondary Market buy-side participants wishes to purchase
a Direct Investment Portfolio, a Tail End Fund or a “portfolio strip”, but
does not have the management bandwidth to monitor its performance, Azla Advisors
can leverage its own executive management and operations background to assist
Secondary Fund clients by means of:
- Direct Portfolio Investments - Actively manage or monitor status of the portfolio of Direct Investments by having members of our Advisory Board sit on the Board of Directors, serving as Board Observers and/or through active contact with Company Management.
- LP Interests - Maintain active peer-to-peer contact with GP’s and/or portfolio company CEO’s of the underlying portfolios companies