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ARTICLE · 12 APRIL 2024

LP-Led Secondaries: Trends, Opportunities And Key Considerations

DLA Piper
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Initially the secondaries market was considered as a niche in the private equity market. In recent years, secondary transactions have been increasingly seen by limited partners...

LuxembourgFinance and Banking
Caroline Pimpaud
Caroline Pimpaud
Bahya Bouharati
Bahya Bouharati
Nelly Rugambage
Nelly Rugambage

Initially the secondaries market was considered as a niche in the private equity market. In recent years, secondary transactions have been increasingly seen by limited partners (LPs) and general partners (GPs) as an alternative to the traditional primary market and are now a mainstream pillar of the private equity landscape. While the secondary transactions market encompasses various type of transactions, it's crucial for LPs to carefully evaluate key considerations to navigate this market efficiently and fully exploit the opportunities presented by LP-led secondary transactions.

SECONDARY MARKET TRENDS

A secondary transaction refers to a scenario in which assets are sold before reaching the end of their expected investment cycle. These transactions may be initiated either by a GP (GP-led) or an LP (LP-led). The specific structuring options depend on various factors, including stakeholders' interests, investor preferences, legal and regulatory environment, and

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