Private Equity Secondaries Frenzy Spurs Law Firm Competition

Some Big Law firms have found success in an emerging corner of private equity, bolstering their bona fides in the all-important asset class while riding out a downturn in traditional dealmaking.

Private equity sponsors use the secondaries market to offload assets to other private equity players or even sell ownership stakes in their own firms. The once-backwater was expected to top $140 billion in transactions last year, according to data from investment bank Jefferies. It’s an alternative route to cashing in bets and provides returns for investors at a time when exit sales and initial public offerings have stalled.

The ...