Secondary Investments

What is a secondary investment?

Secondary investments occur when a buyer, such as NTD, acquires existing private assets. These transactions offer a way for private equity asset owners to generate liquidity outside of traditional organic exits. In today’s market, secondary transactions typically fall into two categories: LP-led secondaries, where a limited partner sells their interest in one or more private equity funds directly to a secondary buyer; and GP-led secondaries, where a general partner collaborates with a secondary buyer (or buyers) to create liquidity solutions for their limited partners

Our approach to secondary investments

We see significant potential in secondary investments for delivering strong early returns. Secondaries can offer the advantage of acquiring assets at discounted prices compared to their reported value, along with a shorter investment horizon. This can lead to enhanced near-term liquidity due to the maturity of the assets. Additionally, the high level of diversification inherent in secondary investments enhances their attractiveness from a risk-adjusted return perspective.