Secondaries
Buying maturity, often at a discount.
Acquiring existing interests in private-market funds, where the assets are already visible, the holding period is shorter and the price is frequently below stated value.
Strategy
The same assets, entered later and more cheaply.
When an investor in a private fund needs liquidity before the fund matures, they can sell their interest to another investor. That transaction is the secondary market, and it has grown into a substantial, sophisticated asset class of its own.
For the buyer, secondaries offer three advantages over committing to a new fund: the underlying companies are already known rather than blind, the remaining life is shorter, and the interest is often acquired at a discount to its stated value. Together these can ease the early drag that new private-market commitments impose.
See the full platformEasing the J-curve
A gentler entry into private markets.
New private-market commitments typically fall in value before they rise, the so-called J-curve, as fees are paid before value is created. Because secondaries buy into funds that are already invested and maturing, they can shorten that early dip and bring distributions forward. The comparison below is illustrative.
Illustrative characteristics versus a new primary commitment, not a forecast. Capital remains at risk.
The market
Two sides of the same opportunity.
Investor-led secondaries
Purchasing fund interests from investors who need early liquidity, typically a portfolio of mature holdings acquired at a discount.
Manager-led secondaries
Participating as a manager moves prized assets into a new vehicle, giving existing investors an exit and new investors focused exposure.
Continuation vehicles
Backing high-quality companies a manager wishes to hold longer, with fresh terms and a clearer view of the assets.
Suitability & risk
What to weigh before allocating.
Still illiquid
Secondaries shorten the holding period but do not remove illiquidity. Capital remains committed for years.
Pricing skill
The discount reflects risk and must be judged carefully. Mispricing a portfolio is the central danger.
Manager quality
You inherit the underlying managers and companies. Their quality determines the outcome.
Capital at risk
A discount is not a guarantee. The underlying assets can still fall in value.
Questions
What clients ask us first.
Continue
Related capabilities.
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Explore the secondary market.
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