Fund Structure
What is Secondaries?
Secondaries are the buying and selling of existing fund interests or portfolios before a fund winds down. The secondary market gives otherwise-illiquid private fund stakes a way to change hands.
A secondary transaction transfers an existing LP’s fund interest (or a GP’s portfolio) to a new buyer. It provides liquidity in an asset class that is otherwise locked up for a decade or more, and lets buyers acquire more mature, partly de-risked positions — mitigating the J-curve.
The secondaries market has grown into a large, specialized segment of private markets with dedicated funds.
Also known as: secondary market, secondary