- 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). [1]
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). [1]
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. [2][3]
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. [1]
- Jonathan Costello becomes head of secondary advisory group (domestic), and Pablo Calo becomes head of international secondary advisory. [1]
- Providence Equity’s seventh fund’s secondary process saw ~$800 million–$900 million in LP sales; staple into Fund VIII of approximately $450 million. [1]
- Fund VIII is targeting $5 billion with a cap of $6 billion. [1]
- Park Hill Group is owned by PJT Partners, following its spin-off from Blackstone in 2015. [2][3]
- PJT Partners completed the spin-off on October 1, 2015, began trading under symbol “PJT” on NYSE. [2][3]
- PJT Partners provides, through Park Hill, secondary advisory and private fund advisory services for alternative investment managers. [2][3]
Sources
- [1] www.buyoutsinsider.com (Buyouts Insider) — July 25 2018
- [2] www.blackstone.com (Blackstone) — October 1 2015
- [3] ir.pjtpartners.com (PJT Partners / SEC) — 2015