About Kline Hill

• Founded: 2014

• Headquarters: New York, United States

• AUM: $2bn as of 2023

• Strategy: GP-led secondaries, middle-market

• Track record: Prior CVs include technology and healthcare assets; typical transaction sizes $100m–$500m

• Leadership: Founded by partners David Fann and Michael Psaros

Kline Hill is leading a continuation vehicle for Plaza Ventures' position in a digital advertising portfolio company. The transaction allows Plaza to extend hold period on the asset while offering existing LPs liquidity or the option to roll into the new vehicle. Deal size and pricing terms were not disclosed.

The CV comes as ad-tech valuations have compressed from 2021 peaks but stabilized over the past 12 months. A comparable transaction closed in October 2024 when Lexington Partners led a $220m CV for Spectrum Equity's stake in a marketing technology platform, pricing at a 15% discount to prior NAV. GP-led volumes in software and internet-adjacent assets have remained steady despite exit market uncertainty, with sponsors using CVs to warehouse companies through revenue inflection points rather than sell into uncertain M&A conditions.

Plaza's decision to structure a CV rather than pursue outright sale suggests the underlying asset may not yet command acceptable pricing in bilateral markets. The key variable to watch is whether Kline Hill brought in new institutional capital or the CV was primarily funded by existing Plaza LPs rolling — the former signals genuine third-party validation of the hold thesis, the latter can indicate limited buyer appetite. Secondary pricing for digital advertising assets has shown wide dispersion depending on customer concentration and revenue mix between direct advertisers and platforms.

Source: Secondaries Investor