Free private markets document template

Secondary Liquidity Planning Memo Template

Create a secondary liquidity planning memo covering sale objectives, portfolio selection, pricing, process, conflicts, risks and proceeds.

01

Executive summary

Community Foundation Investment Office should evaluate an LP-led secondary sale in Second half of 2027 targeting $80m-$110m of net proceeds.

02

Portfolio position

The private markets portfolio has $690m of NAV and $295m of unfunded commitments.

03

Liquidity need

Expected 12-month capital calls are $115m. A secondary sale would supplement distributions and protect commitment flexibility without relying solely on public-asset sales.

04

Transaction objective

Target net proceeds of $80m-$110m. The strategic rationale is to Increase liquidity, reduce tail exposure and rebalance vintage concentration.

05

Proposed portfolio

Eight mature buyout and growth funds from 2015-2019 vintages

06

Valuation & pricing

The portfolio has $135m of reference NAV and is expected to price at 85%-92% of reference NAV. Compare headline pricing after deferred consideration, fees, leakage and closing adjustments.

07

Market conditions

Improving buyer demand for diversified seasoned portfolios; financing remains selective

08

Sale process

Run a competitive process with an experienced secondary advisor. Target buyers include Dedicated secondary funds, diversified asset managers and selected strategic buyers. Preserve flexibility to remove assets or terminate the process.

09

Governance & conflicts

Independent pricing review, disclosure of advisor relationships and committee approval of any stapled transaction

10

Key risks

Key risks are pricing discount, information leakage, GP consent, deferred consideration and adverse selection. Establish minimum pricing, certainty and consent requirements before launching.

11

Recommendation

Authorize market testing and return to the Investment Committee before accepting a binding offer.