Labyrinth Capital Partners takes ‘rifle-shot’ approach to GP-led secondaries
The PartnershipAccording to Secondaries Investor, Labyrinth Capital Partners is a growth-stage secondaries specialist that is pre-marketing a $300 million Fund III. The firm draws on its founder's 20 years of…
Executive Summary
Real-time Market IntelligenceThe PartnershipAccording to Secondaries Investor, Labyrinth Capital Partners is a growth-stage secondaries specialist that is pre-marketing a $300 million Fund III.
The Partnership
According to Secondaries Investor, Labyrinth Capital Partners is a growth-stage secondaries specialist that is pre-marketing a $300 million Fund III. The firm draws on its founder's 20 years of experience to provide liquidity to general partners (GPs) seeking distributions to their limited partners (LPs).
About Partners Group
Partners Group is a global private markets investment management firm, offering investment programs and mandates in private equity, private real estate, private infrastructure, and private debt. Founded in 1996 and headquartered in Baar-Zug, Switzerland, Partners Group has offices across North America, Europe, Asia-Pacific and the Middle East, and manages over $119 billion in assets on behalf of its clients as of June 2022.
About Labyrinth Capital Partners
Labyrinth Capital Partners is a specialized secondaries firm focused on providing liquidity solutions to general partners. Founded in 2015 and based in New York, the firm was launched by industry veteran David Goldstein, who has over 20 years of experience in private equity and secondaries investing. Labyrinth targets investments in the $10-50 million range, focusing on growth-stage funds and complex, bespoke GP-led transactions.
Strategic Value
This "rifle-shot" approach by Labyrinth Capital Partners highlights the growing demand for liquidity solutions among general partners, particularly in the current market environment. With many private equity funds sitting on significant unrealized gains, GPs are increasingly looking to monetize portions of their portfolios to return capital to limited partners and position themselves for new investment opportunities.
Labyrinth's focus on customized, GP-led secondaries transactions allows it to work closely with managers to create tailored liquidity solutions that meet their specific needs. This positions the firm as a valuable partner for GPs seeking to optimize their fund structures and manage their portfolios proactively.
Competitive Landscape
The secondaries market has seen tremendous growth in recent years, with total transaction volume reaching a record $130 billion in 2021. This has attracted a wide range of players, from large institutional investors to specialist secondaries firms like Labyrinth.
Competitors in the GP-led secondaries space include firms such as Partners Group, Coller Capital, and Lexington Partners, all of which have significant experience and capital to deploy in this segment. However, Labyrinth's niche focus and founder's deep industry relationships may allow it to identify unique opportunities and provide tailored solutions that differentiate the firm in a crowded market.