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Report: Second-Hand Stakes a Better Bet for Private Investment Newbies

Institutional Investor

Secondary funds, which purchase existing positions in private funds from other limited partners looking to exit their investments, for liquidity, portfolio restructuring, or other reasons, allow allocators to see more immediate cash distributions while experiencing less overall risk compared to other private investment vehicles.

Senior investment director Alex Shivananda walks through the various considerations for institutional investors considering a private investment allocation for the first time, including its advantages, distributions, results, and the importance of manager selection, based on a secondaries market research report produced by Cambridge Associates.

Read the full article here.

Read Cambridge Associates’ secondaries research paper cited in the article, “When Secondaries Should Come First,” here.