TY - JOUR T1 - Opportunities and Challenges in Secondaries JF - The Journal of Alternative Investments SP - 74 LP - 86 DO - 10.3905/jai.2003.319084 VL - 6 IS - 1 AU - Geoffrey G. Clark AU - J. Christopher Kojima Y1 - 2003/06/30 UR - https://pm-research.com/content/6/1/74.abstract N2 - The secondary market for private equity has evolved significantly in recent years. Investors in secondary funds, sellers seeking early liquidity on their investments, and existing and prospective portfolio managers have all sharpened their focus on this segment of the asset class. Near-term and long-term factors are driving an everincreasing demand for liquidity from current investors—for both traditional limited partnership interests as well as “synthetic secondary” situations, involving portfolios of direct company investments. Existing buyers and new entrants are attempting to address this demand by expanding their presence in the market. However, the very inefficiencies which make the secondary market an attractive opportunity can conspire to produce uneconomic or unwise investment decisions for investors unfamiliar with its challenges, particularly in volatile financial markets and unpredictable geopolitical environments. This article discusses these challenges and opportunities. ER -