Where there’s smoke, there’s usually fire! 🔥
One of the best leading indicators of secondary market activity is the amount raised by secondary-focused funds. At Caplight, we track this closely—2024 has been a massive year so far! 💰💰💰
What's happened:
February: Industry Ventures closed its notable $900M Early-Stage Hybrid Fund, following the $1.45B it raised only 7 months earlier.
June: Lightspeed applied with the SEC to become an RIA, enabling them to invest more than 20% of their funds in secondary markets and other alt. assets.
June: StepStone Group broke records by raising a staggering $3.3B for its latest secondaries fund.
July: New Enterprise Associates (NEA) added $468M to their Secondary Opportunity Fund.
August: G Squared secured $1.1B for their Sixth Flagship Fund.
August: HarbourVest Partners shattered records again, raising a jaw-dropping $18.5B for a secondaries fund.
October: As we were putting together this post, Accel filed with the SEC to become an RIA, expanding its ability to tap secondary markets.
These are just a few headlines that have caught our attention—let us know if we're missing any big ones!
How it works:
- Deployment cycles can stretch for years, so don’t expect all of these assets to hit the secondary market immediately.
- Most secondary-focused funds are spread across alt. assets (buyout, private credit, VC, etc.).
- The majority of these assets will flow into fund secondaries (LP interests) vs. single asset direct secondaries.
Why this matters:
The secondary fundraising market is booming as more financial institutions jump on board. The space is growing. At Caplight, we're here to support you as your data and liquidity partner.
Long secondary markets! 🚀
DISCLAIMER: "This is for informational purposes only and does not constitute an offer to buy or sell securities. Any investment in private funds is speculative, carries risk, and is suitable only for those who can bear the loss of their entire investment. Private funds investments are illiquid, and shares will not be redeemable at investor's discretion. Investors should fully understand and be able to assume the risks associated with investing in private funds."
