Why are GP-led secondary transactions experiencing rapid growth?

The rapid growth of GP-led secondary transactions can be primarily attributed to their ability to provide liquidity to Limited Partners (LPs) while addressing a variety of other objectives. In the private equity market, LPs often seek flexibility in their investments, and GP-led secondary transactions offer a mechanism for them to sell their interests without the need for a public market.

These transactions can be beneficial for GPs as well, as they allow them to restructure funds, extend holding periods for certain assets, or facilitate the entry of new investors into a specific fund. This flexibility helps in managing the lifecycle of investments more effectively and aligns with various strategic objectives beyond just providing liquidity.

The other options do not accurately reflect the broader strategic advantages presented by GP-led secondary transactions. While they might have some relevance in specific scenarios, they do not encompass the main reasons behind the rapid growth of these transactions in the market.