Private Equity Secondaries
Private Equity Secondaries

Private Equity Secondaries


Provides exposure to private equity opportunities acquired in the secondary market.  Seeks diversification across managers, strategies, regions, industries and vintage years.

Investment Approach

Investing in private equity secondaries can serve as an effective way to start or enhance a private equity program. Attractive features of private equity secondaries may include faster capital draw down and cash flow realization relative to primary private equity commitments, greater visibility into underlying holdings, access to funds from prior vintage years and lower expenses due to the avoidance of most fees paid by the original limited partner up until the time their interests are purchased.  

The team seeks to capture value in the secondary markets in a number of ways. First, by targeting transactions that attract less competition from traditional purchasers of secondary interests. Second, by acquiring assets at sizable discounts to estimated fair market value. Third, by seeking to acquire interests in mature funds to minimize blind pool risk. Finally, by applying equal weight to manager quality and deal economics.

Experienced, purpose-built team

Dedicated private equity secondaries team with comprehensive due diligence capabilities and specialized analytical skills. 

Strategic focus on off-market transactions

Well-developed sourcing network enhanced by Morgan Stanley's extensive global footprint and market presence.

A partner of choice

Private equity general partners view the team as an attractive replacement partner given our ability to commit primary and co-investment capital through our private equity fund of funds programs. 

Investment Process

Leverage extensive relationships with private equity general partners, intermediaries and other market participants to access off-market deal flow.


Review the transaction for "interest in concept." Assess portfolio quality, valuation and deal dynamics. Collect relevant financial data. 

Detailed Analysis

Rigorous quantitative and qualitative due diligence to assess the existence of embedded value in the secondary interest, the assumptions underlying the general partner's assessment of current and future value, evidence that the value drivers for key assets are sustainable, possibility of near-term liquidity and overall return expectations for the investment.

Negotiation and Pricing

Engagement with the seller to determine if a transaction can be completed at a price the team finds attractive. Employment of different bidding strategies based upon the bidding process and competitive dynamics.

Confirmatory Due Diligence and Approval

Follow-up calls with general partners and management teams. Targeted reference checks and visits with key portfolio companies. Legal review and Investment Committee review and approval.

Portfolio Managers
Head of the AIP Private Markets Team
30 years industry experience
Managing Director
28 years industry experience
Executive Director
16 years industry experience
Managing Director
15 years industry experience