Free private markets document template
Secondary Sale Evaluation Memo Template
Create an institutional LP private equity secondary sale memo covering fund interests, price, NAV discount, buyer process, liquidity, risks and recommendation.
01
Executive summary
Institutional LP is evaluating Proposed Secondary Sale, a sale of Nine mature buyout and growth funds across 2016-2020 vintages to Secondary Buyer for $142m.
02
Sale rationale
Reduce legacy manager concentration, accelerate liquidity and simplify monitoring of subscale positions
03
Portfolio scope & quality
Nine mature buyout and growth funds across 2016-2020 vintages. Quality assessment: Mix includes several older assets with delayed exits, alongside a small number of high-quality unrealized winners. Retained exposure: Maintain core relationships and current-vintage commitments; no sale of priority re-up managers.
04
Pricing & valuation
Reference NAV is $160m as of September 30, 2027. The proposed price is $142m, or 88.8% of reference NAV / 11.2% discount.
05
Buyer assessment
Secondary Buyer is the preferred buyer. Assess capital certainty, reputation, transfer experience and alignment with the proposed terms.
06
Process & execution
Limited competitive process with three qualified bids; preferred buyer submitted highest clean price and accepted standard transfer terms. Expected closing: 45-60 days following consent and transfer completion.
07
Liquidity & portfolio impact
Proceeds increase liquid assets and reduce expected net capital-call burden by approximately $18m
08
Alternatives considered
Hold to maturity, partial sale, preferred-interest financing, fund-interest loan or staged sale process
09
Costs, tax & accounting
Estimated legal and advisory costs of $0.8m; tax and accounting treatment confirmed with advisors
10
Diligence completed
NAV tie-out, fund-level review, buyer reference work, transfer restrictions, consent analysis and scenario comparison
11
Key risks
selling future upside below reported NAV, stale NAV marks, consent delays and signaling to GP relationships
12
Governance & approvals
Investment Committee approval required; document rationale, conflicts, buyer selection and final economics
13
Recommendation
Approve sale to the preferred secondary buyer at no less than 88% of reference NAV, subject to final consents and documentation