Draft for review. Not published, and not indexed.
Unmatched Capital
Secondaries and liquidity

Getting out early: what selling a fund stake, rolling into a continuation fund or borrowing against the portfolio really costs

This hub is about liquidity in private funds: how an investor sells a stake, what a roll-or-sell decision looks like from the inside, and what happens when a fund borrows against itself or runs out of road. It asks who gets paid first, who bears the discount, and what the pricing really says.

What readers ask

  • What is the point of a continuation fund?
  • What are the differences between GP-led and LP-led secondaries?
  • Who invests in continuation funds?
  • Are NAV loans risky?
  • What is an LP LED secondary transaction?
  • How long do continuation vehicles last?

In preparation

  • Selling an LP stake: the 90-day process, and the price you will actually get
  • Roll or sell: the continuation fund decision, in the words of the LPs who had to make it
  • NAV loans: who gets paid first when the fund borrows against itself
  • Zombie funds: what happens to the LPs still inside
  • Why LP stakes trade below NAV, and when the discount is a bargain
  • Who keeps the register when a fund interest becomes a token
  • How a distribution reaches a tokenised LP, and the three places it can fail
  • The subscription document doesn't disappear when the fund is tokenised