Market Insight Update: Time Sensitive Investment Opportunities

Within the secondary market, there are numerous opportunities to purchase and sell shares within the private securities sector. There are select time sensitive opportunities where buyers and sellers are granted a narrow window where they can execute deals related to specific later stage opportunities in the private markets as elaborated on below.

1)           Investment into a new round or tender offer – some funds have unique access to a primary round or tender offer where they have excess allocation. They seek additional LP commitments to invest within their fund. Especially if the late stage investment opportunity has a limited secondary market, ventures funds would consider being a LP into a cap table vehicle to obtain indirect investment exposure. Prospective LPs must go to Investment Committee and execute fund subscriptions docs in a timely manner to ensure that they get allocation in the new round or tender offer.

2)           Upcoming public offering – several late stage issuers opt to discreetly drum up interest that they will be going public soon by suggesting that they are working with capital markets bankers or filing their S1. If a buyer would like exposure to these opportunities, it would behoove them to transact sooner than later to ensure that they get an allocation.