## The GP Stakes Opportunity

When a private equity firm wants to raise capital without selling their funds' assets, they can sell a minority stake in *their own management company*. These "GP stakes" give investors a share of the firm's management fees and carried interest—a steady, long-term income stream from one of the most profitable businesses in finance.

The market is significant and growing. According to [PitchBook](https://pitchbook.com/news/articles/could-evergreen-funds-provide-the-exit-gp-stakes-investors-want), there were $3.4 billion in GP stakes deals globally in 2024. This year alone, blue-chip firms including Ardian, Mubadala's investment arm, General Catalyst, and Accel-KKR have all sold minority stakes.

## The Liquidity Problem

Here's the challenge: GP stakes don't have a natural exit.

Unlike traditional private equity investments where companies are eventually sold, GP stakes just keep generating income. That sounds attractive—until you need your capital back.

**The current reality for sellers:**
- No self-liquidating mechanism
- Secondary market sales typically require **25-30% discounts**
- Most secondary funds won't buy because of indefinite hold periods
- Public listings have underperformed (Petershill Partners recently announced delisting from the London Stock Exchange due to persistent undervaluation)

As one secondary adviser told PitchBook: *"No one wants to buy these funds because you never know how long you're going to be stuck in them."*

## Evergreen Funds: A Natural Fit

The evergreen fund market has exploded to **$427 billion in AUM** and is projected to exceed $1 trillion within five years. These perpetual, semi-liquid vehicles may finally provide the liquidity solution GP stakes investors need.

**Why evergreen funds want GP stakes:**
- **No fixed life** – They can hold assets indefinitely
- **Cash yield requirements** – They need liquid reserves for investor redemptions
- **Steady returns** – GP stakes offset volatility from other portfolio holdings
- **Natural alignment** – Both are designed for long-term, perpetual structures

Major players are already moving. CAZ Investments, a $9 billion Houston firm, has acquired roughly $1 billion in GP stakes fund interests on the secondary market in the past year alone—claiming to represent approximately 75% of the entire secondary market for these assets.

## A Growing Opportunity

The convergence of these two markets—illiquid GP stakes seeking exits and evergreen funds seeking yield—represents a significant opportunity for sophisticated investors and intermediaries.

Key trends to watch:
- **Institutional evergreen vehicles** may be better suited for GP stakes than retail-oriented products
- **Pricing expertise** becomes critical as the market develops
- **Distribution platforms** like iCapital and CAIS are making private markets more accessible
- **Specialized buyers** are emerging to fill the liquidity gap

## How Premier Alternatives Can Help

At Premier Alternatives, we specialize in facilitating secondary market transactions for private market investments. Whether you're:

- **A GP stakes investor** seeking liquidity before the traditional exit timeline
- **An evergreen fund manager** looking to source quality GP stakes exposure
- **A family office or institution** exploring this emerging asset class

We provide the relationships, market knowledge, and transaction expertise to help both buyers and sellers navigate this complex market.

**The GP stakes secondary market is nascent but growing.** With the right intermediary, sellers can avoid the steep discounts that have historically plagued this space, while buyers can access deal flow that rarely comes to market.

---

*Interested in exploring GP stakes liquidity solutions? [Contact our team](/contact) to discuss your specific situation.*

---

**Sources:**
- [PitchBook: Could evergreen funds provide the exit GP stakes investors want?](https://pitchbook.com/news/articles/could-evergreen-funds-provide-the-exit-gp-stakes-investors-want) (December 2025)


The GP stakes market faces a persistent liquidity challenge. Evergreen funds may finally provide the exit that investors have been waiting for.

GP Stakes and the Search for Liquidity: How Evergreen Funds Are Changing the Game


The lines between public and private markets are blurring faster than ever. This week, index provider MSCI [launched a new benchmark](https://www.ft.com/content/9a981542-0a1c-4e26-a705-1d5932df409e) that combines public and private equities into a single index—a development that raises important questions about how we price assets that don't trade on public exchanges.

## The New Reality: Private Equity Meets Indexing

MSCI's new All Country Public + Private Equity index allocates 15% to private equity, combining 8,300 listed companies with valuations from 10,000 private equity funds globally. As Luke Flemmer, MSCI's head of private assets, told the Financial Times: "The lines around public and private equity are blurring."

This isn't just a product launch—it's a signal of where the industry is heading. With private equity assets under management more than doubling to $4.7 trillion since 2018, investors increasingly want exposure to this asset class. But unlike public stocks that trade millions of times per day with transparent pricing, private companies present a fundamental challenge: **how do you value something that rarely trades?**

## The Pricing Problem

Public equities have a clear advantage: price discovery happens continuously through market transactions. Every second, buyers and sellers agree on prices, creating a real-time consensus on value.

Private companies are different. They might see a formal valuation once per quarter—or only when a funding round or transaction occurs. Between those moments, their "value" is essentially an estimate based on:

- Last funding round valuations
- Comparable public company multiples
- Secondary market transaction data
- Fund manager assessments

This creates what some call the "stale pricing" problem. When markets move quickly—as they did in 2022—private valuations can lag reality by months, creating a disconnect between reported values and actual market conditions.

## Why This Matters for Everyday Investors

The MSCI index launch matters because it's part of a broader trend: making private markets accessible to more investors. Consider:

- **Evergreen funds** with no fixed end dates are increasingly marketed to wealth managers and their clients
- Wealthy investors hold roughly 50% of global capital but represent just 16% of assets in alternative investment funds, according to Bain
- Major financial institutions are building products to democratize private market access

As these products proliferate, the quality of underlying pricing data becomes crucial. An index is only as good as the data that feeds it. If private company valuations are stale, inconsistent, or opaque, the index—and any products built on it—may not reflect reality.

## The Data Infrastructure Gap

MSCI's move into private assets hasn't been cheap. In 2023, the company paid $697 million to acquire Burgiss, a private asset data analytics company. BlackRock followed suit, paying £2.55 billion for Preqin earlier this year. These acquisitions underscore a simple truth: **reliable private market data is valuable precisely because it's hard to obtain.**

Unlike public markets, where pricing data flows freely from exchanges, private market data requires:

- Relationships with fund managers and limited partners
- Access to secondary transaction records
- Sophisticated models to estimate values between transactions
- Continuous monitoring of comparable public companies

## What This Means for Secondary Market Participants

For those of us who work in the secondary market—connecting buyers and sellers of private company shares—this trend toward indexing validates something we've long understood: **transparent, accurate pricing is essential for a functioning market.**

Secondary transactions provide one of the few sources of real price discovery in private markets. When a shareholder sells SpaceX stock at $185 per share, or Stripe trades at a 40% discount to its last funding round, those are actual transactions between willing buyers and sellers. This data is invaluable for:

- Investors benchmarking their portfolios
- Index providers trying to track private market performance
- Companies understanding their true market value
- Regulators monitoring private market activity

## The Bottom Line

MSCI's combined public-private equity index is a milestone, but it also highlights the work ahead. As private markets become more accessible through indices, ETFs, and evergreen funds, the demand for accurate, timely valuation data will only grow.

For investors considering private market exposure—whether through new index products or direct secondary transactions—understanding how valuations are determined is essential. Not all private market data is created equal, and in an asset class where prices aren't set by continuous trading, the methodology behind the numbers matters as much as the numbers themselves.

---

*The FT article referenced in this piece is available at [ft.com](https://www.ft.com/content/9a981542-0a1c-4e26-a705-1d5932df409e). Premier Alternatives provides secondary market transaction services for private company shares.*


MSCI's new combined public-private equity index highlights a critical challenge: how do you price assets that don't trade daily? As private markets become more accessible, accurate valuation data becomes essential.

Why Accurate Pricing Data Matters as Private Equity Enters the Index Era

*Commentary on TechCrunch's "[Our Funds Are 20 Years Old](https://techcrunch.com/2025/11/18/our-funds-are-20-years-old-a-look-inside-the-liquidity-crisis-reshaping-venture-capital/)"*

**By Premier Alternatives Team**

---

## The Problem: Your Capital Is Locked Up Longer Than Ever

A recent TechCrunch investigation reveals what many limited partners (LPs) already know: venture capital has a liquidity crisis. What was once a 13-year commitment has morphed into an 18-20 year marathon—and LPs managing over $100 billion are scrambling to adapt.

As Adam Grosher of the Getty Trust notes in the article, the "asset class is just a lot more illiquid" than expected, with funds holding "blue-chip assets" for 15-20 years.

**The stark reality:** If you invested in a VC fund in 2008, you might still be waiting for your capital back in 2025.

## By The Numbers: The Liquidity Drought

The TechCrunch piece highlights several eye-opening statistics:

- **Funds routinely extending to 15-20 years** vs. the expected 13
- **90% valuation haircuts** in secondary markets (companies valued at 20x revenue offered just 2x in secondaries)
- **Emerging managers facing 80% markdowns** on perceived winners
- **Capital concentration:** Established managers raised 8x more than emerging managers in recent periods

For LPs, this creates a portfolio management nightmare. You're stuck holding illiquid positions in aging funds while new opportunities emerge.

## Why This Matters for You

If you're an LP, this liquidity crisis impacts you in three critical ways:

### 1. **Cash Flow Planning Becomes Impossible**
When distributions get pushed from year 13 to year 18, your entire allocation model breaks down. University endowments, foundations, and family offices that planned spending around historical timelines now face shortfalls.

### 2. **Opportunity Cost Mounts**
Capital locked in a 2010 fund can't be deployed in today's AI revolution or other emerging sectors. The longer your money sits, the more opportunities you miss.

### 3. **Vintage Year Risk Compounds**
Over-concentration in certain vintage years (2020-2021, anyone?) becomes harder to rebalance when funds won't return capital for two decades.

## The Solution: Secondary Markets

Here's what TechCrunch's article hints at but doesn't fully explore: **LPs are actively using secondaries to manage this crisis.**

The article mentions that institutional investors "are actively using secondaries to manage illiquidity"—and that's exactly where Premier Alternatives comes in.

## How Secondary Markets Provide LP Liquidity

Rather than waiting 18-20 years for a fund to mature, LPs can access liquidity now through secondary transactions:

### **Direct Secondary Sales**
- Sell your LP stake to another investor
- Get cash today, not in 2035
- Exit underperforming or over-allocated positions

### **Single Asset Secondaries**
- Monetize specific high-value portfolio companies
- Reduce concentration risk
- Realize gains on mature positions

### **Portfolio Rebalancing**
- Free up capital from older vintages
- Redeploy into current opportunities
- Maintain your venture allocation without being trapped

## Real Market Data: What LPs Are Actually Getting

While the TechCruch article mentions the 90% discount scenario (20x revenue → 2x revenue offers), the reality varies significantly based on:

- **Company quality and growth trajectory**
- **Investor demand for the specific name**
- **Overall market sentiment**
- **Fund timeline and distribution pressure**

On Premier Alternatives, we're seeing:
- **Established unicorns** trading at 40-60% of last round valuations
- **High-growth pre-IPO names** commanding premium pricing
- **Mature "zombie" positions** requiring deeper discounts

The key is having **price discovery** and **competitive bidding** rather than accepting a single lowball offer.

## Why Now Is The Time To Act

The TechCrunch article reveals a structural shift: **LPs are rebuilding allocation models to assume 18-year fund lives**. This means:

1. **More competition for secondary liquidity** as everyone adjusts simultaneously
2. **Better pricing** for sellers who move proactively vs. desperately
3. **Opportunity to redeploy** before the next vintage year cycle

## What You Can Do Today

If you're an LP sitting on:
- **Funds from 2015 or earlier** with no clear exit timeline
- **Over-allocated vintage years** (especially 2020-2021)
- **Underperforming managers** you wish you'd never backed
- **Capital needs** that can't wait another 5-10 years

You have options.

### Start With These Steps:

1. **Inventory your portfolio** - Which positions are truly illiquid?
2. **Assess your priorities** - Where do you need liquidity most?
3. **Get market feedback** - What are similar positions trading for?
4. **Explore structured solutions** - Can you sell 50% and keep upside?

## The Bigger Picture: Venture's Evolution

As Michael Kim of Cendana notes in the article, "Network and domain expertise have a shelf life" unless managers actively refresh connections. The same is true for LP allocations—they need regular rebalancing that's impossible without liquidity tools.

The venture capital model is evolving. The old "spray and pray, then wait 13 years" approach is dead. LPs who adapt by actively managing liquidity—through secondaries, portfolio sales, and strategic rebalancing—will thrive.

Those who don't? They'll be the ones TechCrunch writes about in 2035, still waiting for distributions from their 2015 funds.

## Get Help Finding Liquidity

At Premier Alternatives, we specialize in helping LPs navigate exactly this situation. Whether you're looking to:
- Exit a single fund position
- Monetize shares in a specific portfolio company
- Restructure your entire venture allocation
- Find buyers for hard-to-trade positions

We've built a marketplace designed for the new reality of 18-20 year fund cycles.

**Because your capital shouldn't be held hostage for two decades.**

---

### About This Article

This commentary is based on reporting from TechCrunch's "[Our Funds Are 20 Years Old: A Look Inside the Liquidity Crisis Reshaping Venture Capital](https://techcrunch.com/2025/11/18/our-funds-are-20-years-old-a-look-inside-the-liquidity-crisis-reshaping-venture-capital/)" published November 18, 2025. All quotes and statistics are attributed to the original source.

**Original Source:** TechCrunch
**Article Type:** Commentary & Analysis
**Category:** Education

---

*Ready to explore liquidity options for your LP positions? [Contact our team](/contact) or [browse current opportunities](/exchange/listings).*


Commentary on TechCrunch's "[Our Funds Are 20 Years Old](https://techcrunch.com/2025/11/18/our-funds-are-20-years-old-a-look-inside-the-liquidity-crisis-reshap...

The VC Liquidity Crisis: How LPs Are Finding Exits After 20 Years

## What Is a Forward Contract?

A forward contract is a customized agreement between two parties to buy or sell an asset (in this case, private company shares) at a specified price on a future date. Unlike immediate sales, forward contracts allow shareholders to receive liquidity today while transferring the actual shares at a later date.

## How Forward Contracts Work for Private Company Shares

1. **Agreement**: The buyer and seller agree on a share price and future delivery date
2. **Payment**: The buyer pays the seller immediately (or on an agreed schedule)
3. **Transfer**: The actual shares transfer ownership on the settlement date
4. **Documentation**: A legal agreement outlines all terms, conditions, and obligations

## Benefits for Sellers

### Immediate Liquidity
One of the most significant advantages of forward contracts is receiving cash now while formally transferring shares later. This provides liquidity without immediately giving up your equity position.

### Price Certainty
The share price is locked in at the time of agreement. This protects you from potential future price decreases, providing certainty in what can be a volatile private market.

### Tax Planning Opportunities
Forward contracts may offer tax advantages compared to immediate sales. The structure can potentially allow for more favorable tax treatment, though this varies by individual circumstance. Always consult with a qualified tax advisor.

### Simplified Process
Forward contracts typically require less paperwork than traditional secondary sales, especially when working with a buyer experienced in these transactions.

## Benefits for Buyers

### Access to Shares
Buyers gain exposure to companies they believe will increase in value, even when immediate share transfers aren't possible due to company restrictions.

### Risk Management
The price certainty helps buyers manage their investment costs in advance.

## Common Questions About Forward Contracts

### Are forward contracts legally binding?
Yes. Forward contracts are legally binding agreements that obligate both parties to fulfill their commitments.

### What happens if the company is acquired before the settlement date?
Most forward contracts include provisions that address various scenarios such as acquisitions, IPOs, or other liquidity events before the settlement date.

### Can I sell just a portion of my shares?
Yes, you can specify exactly how many shares you wish to sell through the forward contract.

### What documentation will I need to review?
Typically, you'll receive a forward purchase agreement that outlines all terms and conditions. We recommend having this reviewed by your legal advisor.

## Current Opportunity for Private Company Employees

We're currently facilitating forward contracts for shares in select private companies. If you're interested in learning about specific opportunities, please contact our team to discuss current valuations and available allocation.

---

*This article is for informational purposes only and does not constitute legal, tax, or investment advice. Please consult with appropriate professional advisors before entering into any forward contract agreement.*

## What Is a Forward Contract?

A forward contract is a customized agreement between two parties to buy or sell an asset (in this case, private company shares)...

Insights & Research

GP Stakes and the Search for Liquidity: How Evergreen Funds Are Changing the Game

Why Accurate Pricing Data Matters as Private Equity Enters the Index Era

The VC Liquidity Crisis: How LPs Are Finding Exits After 20 Years

Understanding Forward Contracts for Private Company Shares