Term: Secondary market

Specifically with regard to the private equity industry this is a market that allows investors in illiquid private equity funds to sell their interests at a negotiated value to specialist buyers of such interests. The private equity secondary market has grown tremendously in recent years. There is also a secondary market for direct interests in portfolio companies. Many secondary buyers have their own dedicated funds similar to funds-of-funds in which they pool investor capital to target secondary interests in PE funds. As in: If you want to gain immediate access to a collection of fund interests at varying stages of maturity you might consider investing in a secondaries fund.

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