What is the advantage of selling secondary assets for GPs?

Selling secondary assets provides general partners (GPs) with the significant advantage of obtaining immediate cash flow. This liquidity is crucial as it allows GPs to realize returns on their investments and reinvest that capital into new opportunities or to pay down liabilities. This immediate cash flow can be particularly advantageous in times of market volatility or when a timely investment opportunity arises that requires funds.

Additionally, this strategy can enhance the overall flexibility of GPs in managing their portfolios, enabling them to respond to changing market conditions or capitalize on attractive investment opportunities. While other options might touch upon benefits related to risk and management, the core advantage lies in the immediate influx of cash that selling secondary assets provides to GPs.