A LP secondary investment typically involves purchasing existing private capital commitments, providing liquidity to sellers while often being acquired at a discount to net asset value (NAV).
A GP-led secondary transaction typically involves the creation of a new vehicle ("Continuation Vehicle") to acquire either a single asset or a group of assets from an existing fund managed by a GP. This Continuation Vehicle is overseen by the same GP and is largely funded by secondary investors, with existing LPs from the original fund often being offered the opportunity to sell their stake or transfer it into the Continuation Vehicle.
The secondaries market has seen significant growth, with LP secondaries growing from $25 billion to $87 billion, over the last several years. It now accounts for 54% of total volume. GP-led deals are also rising, offering new exit paths through continuation vehicles. Overall, the secondaries market is well-positioned for continued growth, driven by active portfolio management and an increasing demand for liquidity.
Watch the video to gain deeper insights into the secondaries market.
This video was originally published in November 2025.