About Savano

• Founded: 2017

• Headquarters: London, United Kingdom

• Strategy: Direct secondaries, mid-market European buyout

• AUM: Approximately $1.5bn across two funds (as of 2024)

• Track record: Savano Capital Partners I closed at $750m in 2020; focuses on acquiring direct stakes in private companies from selling LPs

Savano has closed its second direct secondaries fund above target. The vehicle attracted commitments exceeding its initial fundraising goal, reflecting sustained LP appetite for strategies that bypass traditional GP-led continuation vehicles in favor of direct company stake acquisitions. The fund targets mid-market European buyout assets where selling LPs seek liquidity outside structured processes.

The oversubscription marks a shift in secondary buyer positioning. Direct secondaries funds—vehicles that acquire individual company stakes rather than fund interests or participate in CVs—have historically struggled to scale past $1bn, constrained by deal sourcing and pricing friction with GPs who prefer controlled exits. Savano's ability to exceed target suggests LPs view direct strategies as a hedge against GP-led transaction concentration, where a handful of large managers dominate continuation vehicle volume and pricing terms increasingly favor GPs over selling LPs.

Two dynamics bear watching. First, whether Savano's deployment pace can match its fundraising velocity—direct secondaries require bespoke negotiations with GPs and sellers, creating longer hold periods than fund stake purchases. Second, how pricing evolves as more capital chases direct deals: recent mid-market transactions have traded at narrower discounts to NAV than 2022–2023 vintages, compressing returns for buyers who lack proprietary deal flow. If direct secondaries funds proliferate without corresponding LP seller volume, bid-ask spreads could widen again by late 2025.

Source: Secondaries Investor