Fund structure
Secondary transaction
Also known as Secondaries
The sale of an existing fund interest from one investor to another.
An LP may sell its stake to raise cash or rebalance. A GP-led secondary moves assets into a new vehicle, often called a continuation fund. Transfers usually need the manager's consent under the LPA.
Why it matters when you raise
When an LP sells its stake in your fund you are asked to approve a new investor, so have a process ready.