Did You Know? Insurance Solutions In GP-Led Secondaries

In light of a slower environment for traditional exits (IPOs, strategic sales, etc.), GPs continue to explore and execute on innovative deal structures in order to balance liquidity needs with strong returns. GP-led secondary transactions are now a key tool in balancing these needs, whether through traditional continuation vehicles or hybrid approaches. One such hybrid approach gaining popularity in 2025 is one in which: (i) a sponsor sells part of its stake in an existing portfolio company to a new fund, (ii) the remainder of its stake is sold to a third-party (often a peer PE fund), and (iii) management rolls a significant equity portion into the go-forward company.

This structure offers partial liquidity, continued exposure to high-performing assets, and strategic alignment between parties with potentially fewer LPAC considerations than a traditional CV.