Secondaries

The secondary market for private assets has grown from ~$500 million of transaction volume in the early 2000s to $100+ billion in 2022. Secondary transactions offer great opportunities for investors, providing the ability to invest in existing assets with reduced blind pool risk and shorter duration. For sponsors, the market provides an effective mechanism to raise capital, create additional value for trophy assets, modify portfolio strategy and reduce risk.


Portfolio Advisors has provided liquidity solutions to clients and sponsors across more than 200 transactions since 2002. We invest in the secondary market via two main strategies:


Limited Partner Secondaries

Limited partner (LP) secondaries are purchases of existing client interests in private equity funds from selling clients. These transactions can be highly bespoke and range from an outright purchase of the interest to structured solutions to achieve a seller’s objectives. Benefits of LP secondaries include:


  • Purchasing fund interests at a discount to fair value
  • Mitigating the J-curve and shortening hold periods
  • Reducing blind pool risk by investing in funded portfolios
  • Creating a meaningfully diversified portfolio in a shorter timeframe


GP-led Solutions

GP-led solutions are purchases of existing companies from a private equity fund; the companies are acquired by a new vehicle which is typically managed by the same sponsor. These transactions range from purchases of single companies to full liquidity solutions for a portfolio of companies held by a fund. Benefits of GP-led transactions include:


  • Positive selection bias; companies purchased from existing funds are generally trophy assets
  • Eliminating blind pool risk by investing in companies with a historical operating track record under the existing sponsor
  • Purchasing assets at an attractive value
  • Mitigating the J-curve and shortening hold periods


Our Approach

Portfolio Advisors secondary investors benefit from our unique approach to the market:


  • Sourcing opportunities from our various investment verticals and strong sponsor relationships
  • Middle-market focus with differentiated return prospects across a greater number of opportunities
  • High-quality assets backed by core sponsors with whom PA has had longstanding and successful relationships
  • Mature, high-quality funds/assets diversified by vintage year, industry, and sector
  • Additional information advantage through our platform, proprietary database and longstanding relationships
  • Experienced and stable team with 230+ years of aggregate private markets experience

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