Glossary
Secondaries
Secondaries refer to the purchase and sale of existing interests in Private Markets funds on the secondary market. Investors can thereby create liquidity before the end of a fund's term, while buyers gain access to a portfolio that is already partially invested.
At a glance
- Secondary market transactions provide liquidity in an otherwise illiquid market segment.
- Buyers of Secondaries typically acquire an already-built, diversified portfolio of positions.
- Pricing risk and the quality of the acquired positions are key factors to consider.
Frequently asked questions
Secondaries offer the advantage that part of the typical J-Curve has already been traversed and the portfolio is already visible. However, secondary market transactions require careful valuation of the acquired positions, and prices may be above or below net asset value.
