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At-a-glance
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Overview
The strategy seeks to offer investors strong risk-adjusted returns by providing access to U.S. middle market secondaries investments, where Churchill often has established relationships with the sponsor and deep asset-level knowledge that drives asymmetric information advantages.
Strategy highlights
- GP-led transactions: Target single and multi-asset continuation funds where sponsors are seeking to extend the hold period for “trophy assets” with proven value creation plans, minimal blind pool risk, and superior alignment of interests via meaningful GP ownership.
- LP-led transactions: Target secondary purchases of interests in high-quality buyout funds comprised of strong underlying assets that will benefit from continued earnings growth and appreciation, providing J-curve mitigation and accelerated returns on capital, while remaining diversified across sponsors, industries, and vintages.
- Scaled U.S. middle market capital provider: Churchill’s scaled U.S. middle market platform consisting of 310+ fund commitments and 475+ direct investments provides an ample hunting ground for Churchill secondaries across both GP-led and LP-interest transactions.
Secondaries is one of the most – if not the most – undercapitalized areas in alternatives.
U.S. MIDDLE MARKET FOCUS
Churchill targets difficult-to-access transactions in the highly attractive U.S. middle market where the firm can leverage its scale as a direct investor to generate asymmetric information advantages.
DIFFERENTIATED SOURCING ANGLE
Scaled private capital platform across primaries, senior lending, junior capital, and equity co-investment provides Churchill secondaries access to high-quality deal flow in the U.S. middle market.
HIGH QUALITY PORTFOLIO
Churchill is able to curate a durable secondaries portfolio by being overweight GP-leds while benefitting from the diversification that LP interests provide.
Portfolio manager
Related articles
Over the past two decades, the private equity secondaries market has transformed into one of the highest growth, and in our opinion most specialized, areas of alternative investments.
In a recent Q&A interview with Private Equity International, Churchill Asset Management’s Nick Lawler discusses why the Secondaries asset class is one of the most undercapitalized areas in alternatives.
Important information on risk
Past performance and does not predict or guarantee future results. Opinions and views expressed reflect the current opinions and views of Churchill as of the date of this material only. Nothing contained herein is intended as a prediction of how any financial markets will perform in the future and nothing contained herein should be relied upon as a promise or representation as to past or future performance of a fund or any other entity, transaction, or investment. Investments in middle market loans are subject to certain risks. Please consider all risks carefully prior to investing in any particular strategy. These investments are subject to credit risk and potentially limited liquidity, as well as interest rate risk, currency risk, prepayment and extension risk, inflation risk and risk of capital loss.
