Secondaries

Secondaries are sales of existing stakes rather than new issuance — an LP selling its fund interest, a fund selling shares in a portfolio company, or employees selling in a company-run process. With companies staying private for a decade-plus, secondaries have become a primary liquidity tool: a way for funds to lock in DPI on winners before a formal exit. Selling a portion of a position that has run far ahead of the fund is increasingly standard practice, not a lack of conviction.