Palico has introduced a new pricing model, expanded transaction capabilities, and refreshed digital tools as it prepares to support larger limited partner-led secondary transactions. The regulated Alternative Trading System connects buyers and sellers of interests in private equity and other private funds through a fully digital marketplace.
The secondary market allows investors in private funds to sell their positions before the underlying fund completes its normal life cycle. These transactions can provide liquidity to limited partners that want to rebalance portfolios, reduce exposure to particular managers or strategies, meet cash requirements or adjust allocations across private markets.
Palico’s platform enables sellers to list interests and receive bids from a network of more than 1,000 secondary buyers without paying to list or accepting exclusivity requirements. Participants remain anonymous until a binding bid is accepted, while listings are supported by verified seller identities and transaction documentation.
The company has updated its fee schedule to make larger transactions more economical. Palico uses a tiered structure in which the fee rate declines as transaction value increases, with each portion priced according to the applicable tier. Transactions above $50 million are priced at five basis points, reflecting the platform’s effort to attract institutional-scale deal flow.
One basis point equals 0.01 percentage points, meaning a five-basis-point fee equals 0.05% of the applicable transaction amount. Digital execution can support lower pricing by reducing the manual coordination, intermediary work and fragmented communication that have traditionally made private fund transfers expensive and time-consuming.
Palico also offers a price indicator that provides directional estimates intended to help market participants evaluate potential pricing before or during a transaction. While an estimate does not guarantee the price that a buyer will offer, it can give sellers and investors a reference point in a market where valuation information has historically been difficult to observe.
The company was founded in 2012 and operates as an SEC-registered broker-dealer, FINRA member and regulated Alternative Trading System. Its updated brand, website and transaction infrastructure reflect the growing institutionalization of LP-led secondaries as transaction volumes increase and more investors seek liquidity from private market portfolios.
KEY QUOTE:
“When we founded Palico, the LP secondary market was almost entirely relationship-driven. Pricing was opaque, processes were manual, and access depended on who you knew. That has begun to change and regulated digital infrastructure is a large part of why. The new site reflects where we are headed: a marketplace that gives every qualified participant the same access, the same information, and the same process, regardless of size or geography.”
Palico statement
