What is a secondary transaction in private equity?

A secondary transaction in private equity is the sale of an existing fund interest or private company stake to another buyer. It gives one investor liquidity without waiting for an IPO or full exit, while allowing a new investor to enter an asset or portfolio at a negotiated price.

In private equity, a secondary transaction usually means one investor is transferring an existing position rather than funding a brand-new primary issuance. The asset being sold could be an interest in a private equity fund, a direct stake in a private company or exposure wrapped into a continuation or structured process.

That matters because the seller is not waiting for the original investment to run all the way to an IPO, trade sale or formal wind-down. Instead, the seller is creating liquidity earlier, while the buyer gains access to an existing asset or portfolio with more information than would usually be available in a first-time primary investment.

What kinds of secondary transaction exist?

The two most common categories are LP-led and GP-led secondaries. In an LP-led transaction, an investor in a fund sells all or part of its limited partnership interest to another buyer. In a GP-led transaction, the manager helps organise a liquidity event around one or more assets, often through a continuation vehicle or another structured process.

There are also direct secondary transactions involving shares in private companies. These can arise when founders, early investors, employees or existing shareholders want partial liquidity before a full company exit. In late-stage private markets, that can include so-called unicorn secondaries, where pricing discipline and confidentiality become especially important.

Why do buyers and sellers use secondaries?

Sellers often use secondary transactions to generate liquidity, rebalance portfolios, shorten duration or reduce concentration in a single fund, asset or vintage. Buyers, by contrast, may be attracted by faster deployment, deeper diligence and entry into an asset that is already part way through its development or ownership cycle.

Pricing in secondary transactions depends on quality, timing, transfer mechanics, concentration, valuation transparency and market appetite. A well-run process therefore needs more than a buyer list. It needs careful preparation, discreet communication and a clear understanding of where pricing leverage is strongest.

Where Anglo-Suisse Capital can help

Anglo-Suisse Capital advises on secondary transactions where discretion, investor access and execution quality matter. That includes private asset transfers, fund interests and late-stage private company situations where a seller wants a controlled process and a buyer wants clarity on structure, timing and value.

The firm also supports related situations across M&A advisory and capital raising, which can be relevant when a shareholder liquidity event overlaps with a wider strategic review or financing process. You can also view the site’s selected transactions format or contact Anglo-Suisse Capital to discuss a specific situation.