What is GP-Led Secondary?
A GP-led secondary is a transaction initiated by the fund manager (GP) rather than an LP, typically involving rolling portfolio assets into a new vehicle or creating a continuation fund. It has become a major liquidity mechanism in private markets.
In a GP-led secondary, the GP structures a transaction — usually a continuation fund or a single-asset deal — that allows existing LPs to either take liquidity (selling to secondary buyers) or roll their interest forward. New capital enters from secondary investors at a negotiated valuation.
GP-led secondaries have grown rapidly because they give GPs more time to realize value from their best assets while providing optional liquidity to LPs who want it. They require careful governance to manage conflicts of interest between the GP (who wants to hold) and LPs (who may want to exit).
Also known as: GP-led, GP secondary