Secondaries were the most popular private equity strategy for LPs in Preqin’s latest survey

  • Germany-based Moonfare, which has over €3bn invested through its digital investment platform, has introduced its first semi-liquid strategy, with a focus on secondaries.

  • The strategy will target a balance of GP-led continuation vehicles and LP-led secondary transactions, focusing on blue-chip managers’ funds and high-quality assets.

  • Moonfare expects the strategy to offer benefits, including defined assets, reinvestment of proceeds, the ability to hold assets beyond the typical ten-year holding period, and a cash-flow profile that benefits from compound interest, which traditional private equity structures might not bring.

  • ‘As the most liquid segment of all private equity assets, secondary investments are particularly well suited to a semi-liquid offering. There is minimal friction between private equity’s historical illiquidity and increasing investor demand for a potential exit earlier than the traditional ten-year tie-in,’ said Sanjay Gupta, Chief Investment Officer at Moonfare.


July 4, 2024 (Preqin News) – Private equity secondaries fundraising hit a record $93.8bn in 2023, a 159% increase on 2022. There are currently 181 secondaries and secondaries direct funds in market, with a combined aggregate target of $129.9bn, according to Preqin Pro data.

Although fundraising for secondaries has risen steadily over the last few years, there are peaks and troughs that depend on the fundraising cycles of the big players. Before last year, the previous record years saw $83.3bn raised in 2020 and $44.8bn raised in 2017.

Nearly two-thirds (64%) of the LPs surveyed for Preqin’s Investor Outlook: H1 2024 report said secondaries provide the best opportunity in private equity, making it more popular than both small- to mid-market buyouts (49%) and special situations (48%).


The opinions and facts included within the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin providing the information in this content accepts no liability for any decisions taken in relation to the above.