What are 'GP-led secondary transactions'?

'GP-led secondary transactions' refer specifically to transactions that are initiated by a General Partner (GP) to provide liquidity to limited partners or to reposition their investment portfolios. In these transactions, GPs often lead a sale or transfer of certain assets within their funds or might create new funds to facilitate the sale of stakes in a fund's assets. This process allows for existing investors to sell their stakes to new investors, thereby providing them with liquidity while also allowing the GP to manage their investments more effectively.

The other options present alternative contexts but do not accurately capture the nature of GP-led secondary transactions. Deals brokered by external firms describe a different transaction structure where intermediaries facilitate sales without the direct involvement of the GP. Acquisitions of General Partners by other entities involve ownership changes rather than liquidity provision and do not focus on the secondary market nature of transactions. Investment opportunities in new startups are entirely different from secondary transactions, as they involve investments in early-stage companies rather than the reallocation of existing fund investments.