Glossary › Secondaries
Secondaries are purchases of existing stakes in private markets funds or portfolios from investors who want to exit early.
Anyone invested in a closed-ended fund can only get out before the end of its term by selling to a third party. Secondaries funds buy such stakes, often at a discount to the last net asset value. In addition there are manager-initiated (GP-led) transactions in which individual holdings are transferred to a new vehicle, known as continuation funds.
Secondaries are popular with semi-liquid funds for two reasons. The money works immediately because the portfolios bought are already invested; the purchase discount can anticipate part of the return. And the holdings are broadly diversified and often closer to exit. A purchase discount is no guaranteed gain, however: it also reflects risks, and the valuation at purchase can temporarily lift the net asset value.
58 of the 139 active funds name secondaries as part of their strategy, often alongside primary funds and co-investments. 9 carry the word in their name and invest mainly in the secondary market.
Secondaries funds (alphabetical) · as at 16 Oct 2026