The GP-Led Secondary Market: Scaling with Relationship Capital 

The GP-led segment of the secondary market is well-positioned to continue experiencing significant growth, driven by both supply and demand tailwinds. Learn which differentiators we believe possess greater potential for valuation arbitrage opportunities.   

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One of the secondary market’s main growth catalysts over the past decade has been the expansion of the GP-led CV market. These transactions, which offer primary fund limited partners (LPs) secondary market liquidity as a supplement to the proactive selling of entire LP interests, have evolved significantly since their initial emergence over a decade ago.
Dennis Scharf
Managing Director, Secondary Investments

Built to Endure Market Cycles 

We believe the recent environment has merely served to enhance pre-existing tailwinds. Similar to what happened in mid-2020 (and what ultimately drove the strong growth in 2021), M&A market uncertainty is the trigger that leads to even more GPs realizing the numerous benefits that continuation vehicles can offer. Learn more about what’s driving the long-term supply tailwinds in the market. 

Economic Benefits

By holding trophy assets longer, GPs can realize significant economic benefits in the form of reinvested and future carry, capturing upside themselves in lieu of transferring this over to competing sponsors (including sponsors which are now trying to masquerade as secondary investors). For companies with a buy and build thesis, additional unfunded capital raised through CV transactions can further enhance these economic benefits for GPs.   

Middle-Market Differentiators

As the GP-led market transitions to one dominated by relationship-oriented, high-quality GPs, secondary firms which are generally viewed as strategic LP capital should continue to benefit from priority access to deal flow. More specifically, secondary firms with small- and middle-market relationships could be best positioned to capitalize on the current GP-led market opportunity given the increasing share of the market that these sponsors now represent. 

Secondary Investing at Hamilton Lane

We seek to provide investors with significant capital appreciation by delivering attractive risk-adjusted returns. Through our unique approach and competitive positioning, we have implemented this strategy by focusing on: 

  • Quality, mature assets
  • Partnering with quality GPs
  • Flexibility and expertise across the spectrum of secondary investments
  • J-curve mitigation and cash yield


$344B+

In Deal Flow in LTM*

$27.0B

Committed Across 470+ Transactions

25+

Years of Secondaries Investing Experience

Secondary Investing Insights

Learn why the GP-led segment of the secondary market is well-positioned to continue experiencing significant growth, driven by current market and macro trends.


About Hamilton Lane

Our purpose is simple: To provide enhanced financial well-being for those who depend on us. We do that by seeking to deliver tailored, solutions-oriented private markets exposure and industry-leading client service. We’re an organization built on over three decades of client-centricity, candor and authenticity and powered by intellectual rigor and data-driven insight. 

Our commitment to serving those who depend on us has remained steadfast, while our focus on growth and transformation has only strengthened. Today, we serve institutional and private wealth investors around the world, helping them tap into the opportunities afforded by this maturing asset class.

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