Limited Partner (LP) secondary markets

August 2024

Secondary markets have evolved from being a virtual wild west for private market investors into a full-fledged market that provides flexibility for both building and trimming private market portfolios.

In this paper, we focus on Limited Partner (“LP”) secondaries. We review the nature of secondary market transactions and how pricing works in this otherwise illiquid marketplace. We discuss the evolution of secondary markets and the current opportunity set. We evaluate historical performance, and address what we believe are the primary pros and cons.