One of the biggest benefits of investing in secondary funds is often listed as early distributions, a benefit that comes from mitigating the J-Curve and investing in the latter end of funds’ lives.

A new wave of investors is emerging in the secondary market, committing to a slew of funds that are raising billions to snap up PE positions from other LPs looking for early exits.

Graham Douglas is a Managing Director at Kline Hill Partners

The deal involves transferring an asset to a continuation fund managed by TRP Capital, a lower mid-market player with no prior engagement in GP-led secondaries

Last year was another one for the secondaries record books as both GPs and LPs seem to be hungry for liquidity and alpha in the challenged private equity markets.

Market players say they expect more secondary buyers to see eye-to-eye with sellers on asset values, unclogging deal flow this year