A GP-led secondary is a transaction in which the General Partner of a private equity fund initiates and structures a secondary market transaction — typically a continuation fund or a stapled secondary — rather than a passive LP selling their fund interest. GP-led secondaries have grown significantly as a tool for GPs to manage fund lifecycle, provide LP liquidity, and retain quality assets beyond the original fund term without a forced exit at depressed valuations.

The main forms of GP-led secondaries include: (1) Continuation funds (single-asset or multi-asset), where specific portfolio companies are transferred to a new vehicle; (2) Strip sales, where a GP sells a proportional slice of multiple portfolio companies to a secondary buyer; (3) Tender offers, where a GP-organized process allows LPs to sell at a negotiated price to a secondary buyer. Each structure involves specific governance, valuation and conflict-of-interest management requirements.

The European PE secondary market for GP-led transactions is estimated at €30–50 billion per year, driven by fund duration pressure, LP portfolio rebalancing, and the growth of dedicated secondary fund strategies. Independent valuation and fairness opinions are a regulatory and governance requirement in most LP agreements and are increasingly requested by institutional LPs even where not contractually mandated.

At Hectelion, we provide independent valuations and fairness opinions for GP-led secondary transactions involving Franco-Swiss assets in our valuation mandates.