5 Myths About LP Secondaries — Busted
The world of venture secondaries is growing — but it’s still misunderstood. Let’s clear the air by busting 5 common myths:
❌ Myth 1: LP Secondaries are only for distressed sellers.
✅ Reality: Most LPs sell for strategic reasons — rebalancing, reallocation, or shortening lock-in. Many high-quality funds see secondaries at a premium.
❌ Myth 2: Buying secondaries means higher risk.
✅ Reality: In fact, buyers often benefit from lower risk. By entering later in a fund’s life, they avoid early-stage uncertainty and get visibility into the portfolio.
❌ Myth 3: You need to be an institution to buy secondaries.
✅ Reality: While institutional LPs dominate globally, family offices and savvy HNIs are increasingly participating through platforms like LP2nd.
❌ Myth 4: Pricing is opaque.
✅ Reality: We bring transparency to secondaries. NAV benchmarks, portfolio updates, and data-driven pricing help both parties make informed decisions.
❌ Myth 5: GPs don’t like secondary transactions.
✅ Reality: GPs care about who the new LP is — not whether a transaction occurs. We facilitate GP approvals and ensure alignment on both sides.
🟢 LP Secondaries are evolving fast.
At LP2nd, we’re not just a marketplace — we’re a movement to bring liquidity, transparency, and trust to India’s VC capital stack.
🚀 Explore open listings or speak to our team to learn how LP Secondaries can work for you.