Secondaries and liquidity solutions advisory
Secondaries and liquidity-solutions advisers help investors and sponsors transfer, restructure or finance interests in private-market funds and portfolios that are not ordinarily liquid.
Definition
Secondaries & Liquidity Solutions Advisory is the professional service of designing and executing transactions that provide liquidity, duration management or portfolio reconfiguration for holders and sponsors of private-market assets.
Overview
Assignments include LP portfolio sales, GP-led continuation vehicles, tender offers, preferred-equity structures, fund finance and other solutions. Advisers must balance price discovery, conflicts, valuation, process fairness, confidentiality and the differing interests of selling, rolling and incoming investors. The category is transaction advisory; it is distinct from investing capital as a secondary buyer.
Scope of advisory work
LP-led solutions
Portfolio sales, pricing, buyer selection and transfer coordination.
GP-led solutions
Continuation vehicles, tenders, strip sales and conflict management.
Structured liquidity
NAV finance, preferred capital and bespoke portfolio solutions.
Typical engagement
- Objectives: identify liquidity, duration, concentration and governance requirements.
- Portfolio analysis: map assets, restrictions, cash flows and valuation evidence.
- Structure: compare sale, continuation, financing and hybrid alternatives.
- Market process: prepare materials, engage counterparties and coordinate diligence.
- Completion: negotiate price, elections, consents, documentation and transfer.
Important distinctions
| Category | Primary question | Typical context |
|---|---|---|
| LP-led secondary | An investor sells existing fund interests. | Portfolio liquidity |
| GP-led secondary | A sponsor reorganises assets into a new vehicle. | Duration and optional liquidity |
| Primary fundraising | Investors commit to a newly raised blind-pool or strategy. | New capital formation |
| NAV financing | A fund borrows against portfolio value or distributions. | Liquidity without an asset sale |
Related categories
The Economy rankings
See the latest Secondaries & Liquidity Solutions Advisory ranking and the associated profiles of ranked firms on Advisory Ranking.
Sources and further reading
View sources and editorial notes
- International Capital Market Association, market-practice and primary-market resources.
- CFA Institute, corporate-finance, valuation and capital-markets resources.
- Relevant securities, insolvency, tax and competition authorities in the applicable jurisdictions.
Editorial note: This entry explains a professional-advisory category and does not constitute financial, legal, tax or investment advice.