Defining the Future of
Private Equity Tertiaries
What are tertiaries?
A tertiary transaction is the purchase of an interest in a secondary private equity fund from an existing investor in that fund. In other words, a secondary of a secondary – or a ‘tertiary’, as we call it. Netley is dedicated to tertiary investing, at scale. We have the expertise to provide tertiary liquidity solutions to our counterparties on accelerated timetables and with absolute transaction certainty.
We have committed capital in excess of $315m and we expect to grow that number significantly over time.
The tertiary market
is growing fast
The tertiary market is a recent, but important part of the global private capital ecosystem, and it’s growing fast.
First, some history. The secondary private equity (PE) market developed because of the growth of the primary PE market: investors in primary PE funds need a way to realise early liquidity for their investments, either to meet cash flow requirements or to rebalance their investment portfolios.
The secondary market has been growing very rapidly, from $40bn of transaction volume in 2015 to an expected $200bn of volume in 2025, and because of this rapid growth, secondary fund investors themselves now need an equivalent early liquidity solution, which the tertiary market provides.
The value of primary PE transactions is c.$2,000bn p.a. and the value of secondary transactions is c.$200bn – we believe that the tertiaries market should grow to a similar proportion of the secondaries market, over time, suggesting a market size of around $20bn.
Netley’s investment strategy
We are a tertiary market investor: we purchase interests in secondary funds from existing investors in those funds, providing them with early liquidity. These secondary funds can be ‘traditional’ funds that hold many underlying investments in primary private equity funds, or single / multi asset continuation vehicles.
By investing in secondary fund interests, we are building a very well diversified portfolio, across sector, geography, strategy and vintage. As secondary funds are already highly diversified by manager and underlying portfolio companies, our tertiary positions compound that diversification, creating an exceptionally robust investment profile.
We invest on a global basis, with a preference for mid and large cap underling PE buyout exposures and a particular focus on the US and European markets.
Netley is a supportive
partner to the primary
and secondary markets
The market for tertiaries is complementary to the market for secondaries, in the same way as secondaries are complementary to primary PE transactions.
We bring additional capital, liquidity and flexibility to the private capital ecosystem, benefiting investors and managers alike.
Contact us
Netley Capital (UK) Limited
58 Grosvenor Street

London, W1K 3JB United Kingdom

info@netley-capital.com
Netley Capital (UK) Limited is an appointed representative of Langham Hall Fund Management LLP, which is authorised and regulated by the Financial Conduct Authority of the UK
We welcome enquiries from potential investors and partners – please do contact us by email.
THIS WEBSITE USES COOKIES
By continuing to use this website, you agree to the setting of cookies