Secondaries: A Powerful Tool for Private Equity Liquidity and Value Creation
Aug 06, 2024
by Simon Koo, CFA, Director, Financial Valuation
The private equity (PE) secondary market facilitates transaction’s between existing
investors, allowing for the sale and purchase of interests in preexisting assets from
the primary market before a traditional liquidity event has occurred, such as a sale of
a portfolio company. This has the benefit of providing an early liquidity option for the
seller and, for the buyer, an opportunity to buy in to other existing funds and assets,
often at discounted prices