Coller Says Volatility Lifts $55 Billion Secondaries Business as Credit Continuation Funds Spread
Updated
Updated · ION Analytics · Aug 7
Coller Says Volatility Lifts $55 Billion Secondaries Business as Credit Continuation Funds Spread
1 articles · Updated · ION Analytics · Aug 7
Summary
$55 billion secondaries specialist Coller Capital says market volatility is driving more selling volume, creating stronger growth conditions for secondary investors in private credit.
Michael Schad, Coller’s head of credit, said recent turbulence has helped test a still-maturing asset class whose rapid expansion outpaced investors’ ability to gauge performance in stressed markets.
Coller operates across LP-led and GP-led deals, with GP secondaries gaining traction as managers increasingly choose to sell assets themselves.
Continuation funds are a major growth area, with technology first developed in equity secondaries now being applied “on steroids” in credit markets.
Schad said that model works differently in credit because continuation funds can hold diversified portfolios of high-quality loans rather than the single-asset structures common in private equity.