Secondary transactions are picking up steam in Southeast Asia as private equity and venture capital funds seek more options for liquidity. However, the quality of assets and pricing mechanism should not be overlooked, said secondaries experts at DealStreetAsia’s flagship Asia PE-VC Summit 2022 on Tuesday.
Secondary transactions involve transfer of investment from a general partner (GP) to a direct secondary investor, acquisition of limited partner (LP) interest, and/or GP-led solutions in which a GP holds a liquidity event for LPs in its existing fund.