Trey Muldrow Talks with peHUB on Standardizing PE Portfolio Sales
Akin Gump corporate partner Trey Muldrow has been quoted extensively by peHUB for its article “PE Secondaries: In Search of a Standardized Approach.” Muldrow led the Akin Gump team that negotiated a groundbreaking investment structure for Vision Capital and its partners as they acquired a portfolio managed by public equity investment firm Willis Stein & Partners.
In a similar vein, Muldrow discusses what he calls “the evolving market for secondary sales of aging private equity portfolios” and notes that a “standardized, consistent and fair” approach to these deals may be some time in coming. The Willis Stein deal blazed a trail for succeeding secondary sales deals, but, as Muldrow states, “Each of these transactions right now is bespoke.” He adds that these deals can be structured as a tender offer, merger or asset sale.
Although, as the article notes, secondary sales have been a part of the PE industry for some time, the type of secondary sale that Muldrow and his team pioneered is different. As he notes, “In the new transactions, you have other private equity specialists coming into it. If you want to take control of an entire fund, you want to know what’s going on with the underlying portfolio companies.”