---
title: "Secondary Buyer | Altss Glossary"
description: "A secondary buyer is an investor that purchases existing interests in funds, portfolios, or single assets from current holders to provide liquidity."
canonical: "https://altss.com/glossary/secondary-buyer"
---

Secondaries & Liquidity

# Secondary Buyer

Publisher: Altss LLCPublished 2026-01-06Content modified 2026-01-06

A secondary buyer is an investor that purchases existing interests in funds, portfolios, or single assets from current holders to provide liquidity.

**Allocator relevance:** **Secondary buyers set liquidity options and pricing—allocators should understand who provides liquidity and under what governance protections.**

### Expanded Definition

Secondary buyers acquire LP interests (traditional secondaries), GP-led stakes (continuation vehicles), or single-asset positions. They evaluate NAV quality, cash flow expectations, sponsor behavior, and process integrity. For allocators, secondary buyers influence both exit timing and realized outcomes: liquidity is not free—it comes with discounts, diligence requirements, and legal complexity.

Secondary buyers also shape portfolio management decisions: when to sell, how to price, and how to manage concentration or liquidity constraints.

### Decision Authority & Governance

Governance includes approvals for selling interests (IC/board policies), valuation standards, conflict handling, and disclosure requirements. Decision authority often depends on ticket size and portfolio concentration—large sales require higher-level approvals.

### Common Misconceptions

- Secondary liquidity equals “full value.”

- Buyers only care about discount and don’t underwrite governance.

- Secondaries are only for distressed sellers.

### Key Takeaways

- Secondary liquidity is a pricing + process trade-off.

- Governance affects fairness and outcomes.

- Buyers vary—track which ones specialize in what.

## Related terms

[Secondaries](https://altss.com/glossary/secondaries)[NAV (Net Asset Value)](https://altss.com/glossary/nav)[Family Office Liquidity Preference](https://altss.com/glossary/family-office-liquidity-preference)[Continuation Vehicle](https://altss.com/glossary/continuation-vehicle)

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