The private credit secondaries market is experiencing explosive growth, on track to match the $140 billion private equity secondaries market by 2030. Martins Marnauza, Investment Partner at Coller Capital, walks us through this fascinating yet often overlooked corner of the alternative investments landscape.
Providing liquidity to institutional investors trapped in 10-year closed-end funds has become big business. What started as a niche opportunity during the global financial crisis has evolved into a sophisticated market with multi-billion dollar transactions.
Marnauza explains how Coller Capital purchases performing private credit assets at discounts, then benefits as these loans are repaid at par. This creates an unusual positive asymmetry rarely found in credit markets.
The conversation explores both LP-led transactions (investors selling fund interests) and GP-led restructurings (managers organising liquidity solutions). We discover why major institutional investors increasingly use secondaries to actively manage their portfolios, whether due to strategy shifts, regulatory changes, or extended loan durations.
For investors seeking strong risk-adjusted returns, private credit secondaries offer an attractive combination of downside protection, current income, and shorter duration compared to primary investments.
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