Venture Capital
The Rise of GP-Led Secondaries in a Tight Exit Market
Nov 30, 2025
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8 MIN
As the IPO window remains selectively open, GPs are turning to structured secondary markets to provide liquidity. This shift represents a fundamental evolution in fund lifecycle management.
Liquidity Without the IPO
GPs are increasingly using 'Continuation Funds' to hold on to their highest-performing assets while allowing LPs who need liquidity to exit. This requires a sophisticated architectural approach to valuation and conflict management to ensure that the GP fulfills its fiduciary duty to both old and new LPs.
Strategic Key Takeaways
Continuation funds are becoming a proactive strategic tool, not a reactive one.
Valuation transparency is the primary hurdle in GP-led deals.
LPs are becoming more sophisticated in negotiating secondary rights.
