Netley Capital has unveiled a dedicated investment vehicle focused on buying interests in secondary private equity funds, marking the first pool of capital in the industry devoted exclusively to tertiary transactions. Backed by $315 million in committed capital, this new franchise aims to provide liquidity solutions for investors who hold stakes in secondary funds, a rapidly emerging segment driven by growing secondary market activity.
Tertiary investing involves purchasing an investor’s position in a secondary fund—either a diversified secondary vehicle or a continuation vehicle holding one or more private equity assets.
As secondary deal volumes have surged past $200 billion this year, demand has outstripped the available supply of capital willing to buy those secondary fund interests. Netley Capital’s new franchise seeks to bridge that gap by offering transactions that close more quickly and at scale.
The firm plans to focus on mid- and large-cap global buyout funds underlying secondary vehicles. Its investor base combines blue-chip institutional limited partners with prominent family offices, all seeking tailored solutions for managing their secondary fund portfolios.
Netley Capital expects to complete its first deal within weeks, leveraging relationships built over decades of experience in primary and secondary private markets, advisory services, and investment banking.
Leadership for the franchise draws on two decades of experience at a leading European buyout firm, where team members developed mid-market strategies and built financial services businesses.
That background underpins Netley’s confidence in a market that remains underserved. By creating a dedicated platform for tertiary transactions, the firm is laying the groundwork for what it sees as a natural evolution. As secondaries emerged to meet the need for early liquidity from primary investors, tertiaries now serve secondary fund investors seeking similar flexibility.
Netley Capital estimates that tertiary transactions could grow to represent as much as 10 percent of secondary market volume, mirroring how secondaries volumes settled around 10 percent of primary private equity activity. A robust pipeline of potential deals is already in development, and the new capital commitment will support those transactions while refining the firm’s market infrastructure and service capabilities.
KEY QUOTES:
“We are thrilled by the level of support for our tertiaries strategy, enabling us to reach our launch milestone in six months. Achieving this amount of committed capital in a relatively new segment of the market reflects the current need and future potential of the strategy. While the concept is new, the manner of investing is not. We are developing a market where demand far exceeds supply.”
“Tertiaries build on, complement, and help fuel the growth of the secondaries market. Just as the secondaries market developed to serve demand for early liquidity from primary private market investors, so tertiaries provide early liquidity to investors in secondary funds. We have developed a strong deal pipeline and expect demand to continue to grow.”
Netley Capital Managing Partner Caspar Berendsen
