Which of the following assets can be included in LP-led secondary transactions?

The correct response is that direct co-investments and limited partner fund interests can be included in LP-led secondary transactions because both types of assets are relevant to limited partners (LPs) looking to divest their holdings.

Limited partner fund interests refer to the ownership stakes that LPs have in private equity or venture capital funds. These interests are often sold in secondary markets, allowing LPs to realize liquidity and reallocate their capital.

Direct co-investments are investments made by LPs directly into specific deals alongside the fund in which they are invested. These are often structured to give LPs more control and potentially enhanced returns on specific investments, and they can also be sold on the secondary market.

This option is comprehensive as it considers a broader range of assets that can be involved in the transactions, reflecting the diverse nature of LP-led secondary market activities. The inclusion of both fund interests and co-investments aligns with practices observed in the private equity industry where LPs often seek ways to manage their portfolios and enhance liquidity through such secondary transactions.