Growing Market

In 2009, secondary deals executed globally totaled $11 billion. By 2021, the market totally $130 billion, a nearly twelve-fold increase. As primary commitments rise, there could be room for even more growth within the secondaries market.

Greenhill. As of 12/31/2021

Primary & Secondary Investment Lifecycles

Earlier Returns of Capital

Unlike primary funds, secondary funds buy interests in funds that have mostly completed their investment periods, containing portfolio companies that are already generating cash flow. As a result, secondary funds typically return investor capital sooner because they purchase stakes at later stages in the private equity lifecycle.

For informational purposes only. The above is not meant to be predictive of the performance of any particular fund.

Buying Already Identified Assets

Secondary investors buy interests after the fund has been investing for 6-10 years, meaning that 85%-95% of the assets that will be purchased have already been identified.