- Park Hill co-founder and vice chairman Larry Thuet, longtime head of secondaries, is retiring in 2018 after transitioning from day-to-day leadership in 2017.
- Jonathan Costello now leads domestic secondaries and Pablo Calo leads international secondaries, marking a generational handoff of Park Hill’s secondaries advisory franchise.
- Park Hill, now a unit of PJT Partners after its 2015 spin-off from Blackstone, is a key player in GP-led and LP-led secondary processes.
- Deals like Providence Equity’s Fund VII secondary plus a stapled commitment into Fund VIII highlight Park Hill’s role in structuring complex secondary solutions while navigating client transition and regulatory risks.
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Background & Leadership Transition
Larry Thuet co-founded Park Hill Group and for many years led its secondary advisory business; in 2017 he moved into a broader vice chairman role while stepping back from day-to-day leadership. In mid-2018, he announced his retirement. Domestic secondaries are now led by Jonathan Costello (joined in 2016 from Morgan Stanley) and international secondaries by Pablo Calo (joined in 2013 from PineBridge Investments).
Park Hill’s Role in Secondaries Market in 2018
Park Hill is among the leaders shifting secondaries from an LP exit tool to a strategic instrument for both LPs and GPs. A marquee example: the Fund VII process for Providence Equity, where existing LPs were able to sell $800-$900 million of their interests, alongside a staple commitment of ~$450 million into Fund VIII, which had a target raise of $5 billion (with a cap at $6 billion).
Corporate Structure & Ownership
Park Hill is a unit of PJT Partners, which was created via spin-off from Blackstone’s advisory, restructuring, and Park Hill businesses. On October 1, 2015, the Park Hill Group became a part of PJT Partners when the new advisory firm began independent operations following its separation from Blackstone.
Strategic Implications
• Leadership changes could impact the client network, given Thuet’s longstanding relationships; Costello and Calo may bring fresh strategic approaches, but transition risks include client uncertainty and potential shifts in deal origination.
• The GP-led secondary plus staple structures (as done in the Providence process) are becoming more common: they align interests, aid fundraising, and offer LP liquidity. Park Hill is well positioned to lead such deals but must manage conflicts and market expectations.
• Independence (post-spin-off from Blackstone) grants Park Hill greater competitive flexibility in advising both sides, but also exposes it to regulatory risks related to placement agents (public pension fund rules, state restrictions).
• Succession planning: Thuet’s retirement raises questions about internal bench strength and continuity; whether Park Hill uses this as an opportunity to evolve its secondary advisory product set or expand geographically remains to be seen.
Open Questions
• How will Thuet’s retirement affect relationships with large LPs and GPs, particularly those cultivated under his leadership?
• Will Park Hill accelerate innovation in secondary deal structures (staples, tender offers, continuation vehicles) beyond what was seen in the Providence process?
• How do regulatory developments (e.g. state restrictions on placement agents) affect Park Hill’s ability to compete or structure deals?
• Post-2018, what will be the scale, whether Park Hill hits or exceeds the targets for successive staple-enabled funds like Providence VIII, and how this influences market norms?
Supporting Notes
- Larry Thuet, vice chairman at Park Hill Group, formerly head of secondary advisory, will retire in 2018.
- Jonathan Costello becomes head of secondary advisory group (domestic), and Pablo Calo becomes head of international secondary advisory.
- Providence Equity’s seventh fund’s secondary process saw ~$800 million–$900 million in LP sales; staple into Fund VIII of approximately $450 million.
- Fund VIII is targeting $5 billion with a cap of $6 billion.
- Park Hill Group is owned by PJT Partners, following its spin-off from Blackstone in 2015.
- PJT Partners completed the spin-off on October 1, 2015, began trading under symbol “PJT” on NYSE.
- PJT Partners provides, through Park Hill, secondary advisory and private fund advisory services for alternative investment managers.
Sources
- www.buyoutsinsider.com (Buyouts Insider) — July 25 2018
- www.blackstone.com (Blackstone) — October 1 2015
- ir.pjtpartners.com (PJT Partners / SEC) — 2015