The rapid growth of structured solutions is evidence of a secondaries industry that continues to evolve and innovate, say John Kelley and Rob Emerson, co-heads of the secondaries group at Latham & Watkins.

Structured solutions are increasingly being used up and down the private markets ecosystem. They can be used to create liquidity at the GP level, for example, by using preferred equity to provide secondaries proceeds to founders, repurchase a minority stake, address succession planning, fund GP commitments or provide capital for expansion into other product lines.

John Kelley and Rob Emerson of Latham & Watkins highlight how these tools are transforming private market transactions. Their insights reflect the broader trend toward more sophisticated financial engineering in the secondaries space, driven by demand for flexible capital structures.

The firm notes that as the industry matures, structured solutions are becoming standard practice rather than exception, enabling GPs to manage liquidity and growth more efficiently.