Glossary · alternatives

Secondaries

Also known as: PE secondaries, secondary market

Definition
Secondaries refers to the trading of existing limited-partnership interests in private-market funds (PE, VC, real estate) before the fund's natural wind-down. Provides liquidity to LPs and known-asset entry for buyers, typically at 5–25% discount to NAV.

Secondaries market grew to US$130bn+ globally in 2024. Specialist managers include Ardian, Lexington, HarbourVest, Coller Capital. JP Morgan Private Bank runs a deep PE secondaries platform that is a flagship offering at the UHNW tier. Secondaries reduce J-curve effects and shorten effective holding periods vs primary PE commitments.

Related

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