Secondaries and Continuation Vehicles

A secondary transaction transfers an existing private-market interest rather than making an original commitment to a new fund. The seller gains liquidity or changes its exposure. The buyer acquires assets with an established history, although valuations and future cash flows remain uncertain.

LP-led transactions typically involve the sale of fund interests. GP-led transactions involve a manager arranging liquidity or a transfer involving assets it manages. A continuation vehicle is one structure used in the latter category. The economic analysis and the governance analysis must be performed together.