CAIA Dallas Presents - Deep Dives: A Quarterly Alternatives Education Series


Topic: Secondary Venture Capital Investments

A secondary market transaction in venture capital (VC) is a transaction in which shareholders in a private VC-backed company sell their stock to an investor. Secondary transactions give shareholders in private companies an opportunity to liquidate some or all of their shares. Liquidity allows early investors to secure a return on their investments and gives employee shareholders the chance to cash in their equity compensation prior to an exit transaction, such as an initial public offering (IPO) or an acquisition.

The secondary market is one of the few spaces in the alternative investment universe that is considered countercyclical. What are the drivers at play today that have led to the volume, quality, and attractiveness of opportunity in the VC secondary space? How do investors approach this asset class and make considerations for portfolio implementation?

Hear Stephen West, Managing Director, StepStone Group, answer these questions and more.