In a recent virtual roundtable event, John Toomey, CEO of leading private equity firm HarbourVest Partners, shared his insights and experiences on the secondary private equity market. 

Toomey has been with HarbourVest for over 27 years, starting as an analyst and working his way up to become the firm's co-CEO in 2022.

During the discussion, Toomey reflected on his own career journey, noting:

“I just loved the volume, the velocity, the complexity. I'd say most importantly, I liked the deal - the art of the deal, where everything has a price and it's about price discovery and forecasting cash flows and risk.”

Toomey also discussed how HarbourVest has evolved over the years, growing from a small team of 40 people to over 1,200 employees across 14 offices globally. He credited the firm's strong partnership culture as a key factor in its success, noting:

"We somehow attract people who run towards fires. If a client or colleague is in need, our people run to help them."

When asked about the growth of the secondary market, Toomey predicted that it could reach $250-300 billion in size by 2030, up from its current estimated size of around $100 billion. He emphasized the importance of aligning incentives with general partners, stating:

"The people running firms, when a fund gets to be 7-9 years old, might not have been the largest GP carry participants when the fund was created. We look to recapitalize the GP in a way that gives them better economic opportunity.” 

The virtual roundtable offered insightful information about how the secondary private equity market has developed as well as the tactics used by major players in the sector like HarbourVest Partners. Toomey provides a unique insight into this dynamic and quickly expanding area of the private equity sector through his candid feedback and predictions.

The event was one of many organized by YJP, a nonprofit dedicated to creating and promoting targeted business and educational opportunities for New York City's Jewish business community. The organization is co-founded by Shaya Lesches, who continues to drive YJP's mission. You can learn more about Shaya Lesches and his work at shayalesches.com.

Interested in more inspiring conversations and events like this? Check out upcoming YJP events.