Investment vehicles and structures

Secondary

A secondary is a purchase or sale of an existing private-market interest. An LP-led secondary transfers an existing fund interest, subject to required approvals. A direct secondary transfers an existing stake in a private company.

Example: If you need liquidity, you may be able to sell part of your fund interest to another investor, if the limited partnership agreement (LPA) permits a transfer and the GP approves it.

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Understanding the terms is a first step. The Aligned Capital Program uses them to teach you how to evaluate a fund and prepare the questions to ask its manager.

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