Secondaries and liquidity
Getting out early: what selling a fund stake, rolling into a continuation fund or borrowing against the portfolio really costs
This hub is about liquidity in private funds: how an investor sells a stake, what a roll-or-sell decision looks like from the inside, and what happens when a fund borrows against itself or runs out of road. It asks who gets paid first, who bears the discount, and what the pricing really says.
What readers ask
- What is the point of a continuation fund?
- What are the differences between GP-led and LP-led secondaries?
- Who invests in continuation funds?
- Are NAV loans risky?
- What is an LP LED secondary transaction?
- How long do continuation vehicles last?
In preparation
- Selling an LP stake: the 90-day process, and the price you will actually get
- Roll or sell: the continuation fund decision, in the words of the LPs who had to make it
- NAV loans: who gets paid first when the fund borrows against itself
- Zombie funds: what happens to the LPs still inside
- Why LP stakes trade below NAV, and when the discount is a bargain
- Who keeps the register when a fund interest becomes a token
- How a distribution reaches a tokenised LP, and the three places it can fail
- The subscription document doesn't disappear when the fund is tokenised