Secondaries
GP-Led Secondary
A liquidity transaction initiated by the GP, typically using a continuation vehicle to hold one or more existing portfolio assets beyond the original fund's life.
GP-led secondaries grew from a niche tool to roughly half of all secondary market volume. They give GPs more time to manage trophy assets and give LPs a choice: roll into the new vehicle or sell at the negotiated price.
The central tension is conflict of interest. The GP sits on both sides of the trade. LPs need an independent fairness opinion, a competitive process, transparent terms, and adequate decision time. Anything less should be treated as a governance issue.
Use a structured framework to evaluate the asset, the price, the terms, and the GP's track record on prior continuation vehicles before defaulting to a roll or sell.