PALICO, THE PE MARKETPLACE

For Secondary Buyers

We provide sophisticated investors access to private capital fund stakes — within a standardized process

As FEATURED IN

Secondaries

WHAT INVESTORS CAN EXPECT

Ease: A standardized process

For single fund stakes or portfolios, our platform offers a step-by-step process designed to optimize participating in a PE secondary sale.

Access: New Opportunities

Between varying strategies, size, locations and industries, you'll see opportunities as they become available on our marketplace.

Speed: Momentum and deadlines

Opportunities take place swiftly and efficiently with deadlines that are diligently enforced by our dedicated secondaries team.

A DYNAMIC MARKETPLACE

FOR SOPHISTICATED BUYERS

STEP ONE

NEW OPPORTUNITIES

Receive alerts directly in your inbox as new fund stake(s) come to our secondary marketplace. Or browse the platform to see all deals over time.

STEP TWO

ACCESS & DILLIGENCE

Interested in an opportunity? Easily begin diligence by requesting access to the data room.

STEP THREE

TRACK PROGRESS

Open the encrypted chat drawer where you can keep track of signed NDAs, file exchanges and conversations with the seller.

STEP FOUR

BIDDING

Submit indicative bids and/or binding bids using our integrated bidding tool. The seller will evaluate these bids in order to see which potential buyer to move forward with.

STEP FIVE

FINALIZE TRANSACTION

Once the winning buyer/bid is selected, the deal goes offline for execution of legalese regarding fund ownership transfer in exchange for cash.

Secondaries

Done differently

A secure solution to discover new opportunities

  • We make sure to select vetted sellers with interesting opportunities for our secondary marketplace.
  • Every seller needs to provide proof of ownership before any fund can be listed for sale.
  • The buyers have the ability to communicate directly through a secured/encrypted chat drawer.

LP-led single fund / portfolio of interests

  • Occurs when a PE fund investor sells an interest or a portfolio of interests to another investor.
  • Buyer becomes a replacement LP in the fund or funds in question.
  • LP buyer also assumes the original investor’s obligations to pay outstanding commitments to the underlying funds.

Explore life as a secondary buyer

Our user-friendly onboarding process ensures that any Accredited Investor can seamlessly join our community and start exploring the vast array of investment options available.

Why BUY

on the Secondary Market

Portfolio Diversification

Increase portfolio exposure and diversification by leveraging the secondary market for strategic asset allocation.

Market Access

Access GP relationships and certain funds that were not previously available to you as an investor.

Mitigate Blind Pool Risk

Get visibility on underlying assets especially for older funds as invested capital will have been invested in known companies mitigating blind pool risk.

Faster returns

Limit the J-curve effect by acquiring fund interest at a later stage of it's life, as it cuts down the time needed until cash is returned to the LP especially if bought at a discount.

What our secondary marketplace users

have been saying

Unigestion

Flashpoint

Anonymous Buyer

Multiplicity Partners

“Palico has made it so that in just a few clicks you can source secondary transactions and deal flow that are relevant to you.”

“We generated interest from 3 different LPs within one week – Like most GPs, we are a small team and we do not have enough staff to actively seek out buyers. The Palico platform allowed us to list our secondary stake in a straightforward and fast manner, and engage with buyers in a secure digital environment.”

“The platform is very user-friendly and it’s always been easy to screen opportunities. On top of that, I receive email alerts that allow me to keep track of what’s new on the platform. Sellers are usually very responsive, it’s all very professional and efficient.”

“We like that you [Palico] help the smaller end of the market to get secondary market liquidity. Most private market investors don’t hold positions in the hundreds of millions and hence don’t get serviced by the larger advisory firms. There was clearly a gap in the secondary market where Palico now plays an important role.”

Eric Marchand, Head of APAC Private Equity

Igor Bilous, Managing Partner of Flashpoint VC

Anonymous Investment Management firm

Andres Hefti, Partner at Multiplicity Partners

FAQ

Palico’s platform can host all types of secondary fund sales, and therefore, any Private Equity fund investor looking to sell their PE fund stake will be able to leverage the platform. However, Palico’s marketplace specializes in smaller fund stakes (of roughly $20M in NAV or below). 

As a result of their transaction size, smaller stakes have traditionally experienced limited access to a competitive bidding process or general liquidity. 

At Palico, we expand this access to liquidity by providing a digital solution where PE investors with smaller fund stakes can attract bids via a competitive multi-bidder process and use digital tools to streamline and guide the deal forward.
 
Benefits of using Palico’s Secondary Marketplace:
 
  1. Competitive Bidding Process: small secondary sellers benefit from a global marketplace featuring secondary buyers ranging from large secondary funds to smaller secondary specialists.
  2. Secure Virtual Data Room: our platform is designed with a fully encrypted data room and messaging module, allowing you to display sensitive information and engage in secure conversations.
  3. Seller Anonymity: the seller always remains anonymous when listing the fund stake for sale. The seller is only obligated to reveal themselves to the buyer when accepting bids from interested buyers.
  4. No Obligation to Sell: there is no obligation to sell — the seller can close their listing at any time without any fees or penalty.
  5. Streamlined Process: our platform provides digital tools that streamline the various stages of the sales process including data room set up, non-binding bids and binding bids.
  6. Comprehensive Customer Service: every secondary sales transaction is assigned to a dedicated Palico PE account services individual to assist throughout the process. Email, call, or message us – we aim to provide a premium customer experience.
  • Single LP stakes
  • Portfolio of LP fund stakes
  • Co-investment opportunities (case by case basis)
  • Fund stakes ranging from $1-100M (exceptions can apply)

Palico’s platform can host all types of secondary fund sales, and therefore, any Private Equity fund investor looking to sell their PE fund stake will be able to leverage the platform. However, Palico’s marketplace specializes in smaller fund stakes (of roughly $20M in NAV or below). 

As a result of their transaction size, smaller stakes have traditionally experienced limited access to a competitive bidding process or general liquidity. 

At Palico, we expand this access to liquidity by providing a digital solution where PE investors with smaller fund stakes can attract bids via a competitive multi-bidder process and use digital tools to streamline and guide the deal forward.
 
Benefits of using Palico’s Secondary Marketplace:
 
  1. Competitive Bidding Process: small secondary sellers benefit from a global marketplace featuring secondary buyers ranging from large secondary funds to smaller secondary specialists.
  2. Secure Virtual Data Room: our platform is designed with a fully encrypted data room and messaging module, allowing you to display sensitive information and engage in secure conversations.
  3. Seller Anonymity: the seller always remains anonymous when listing the fund stake for sale. The seller is only obligated to reveal themselves to the buyer when accepting bids from interested buyers.
  4. No Obligation to Sell: there is no obligation to sell — the seller can close their listing at any time without any fees or penalty.
  5. Streamlined Process: our platform provides digital tools that streamline the various stages of the sales process including data room set up, non-binding bids and binding bids.
  6. Comprehensive Customer Service: every secondary sales transaction is assigned to a dedicated Palico PE account services individual to assist throughout the process. Email, call, or message us – we aim to provide a premium customer experience.
  • Single LP stakes
  • Portfolio of LP fund stakes
  • Co-investment opportunities (case by case basis)
  • Fund stakes ranging from $1-100M (exceptions can apply)
For Sellers
 
What kind of information do I need to list a stake for sale?
We require a “proof of ownership” to be supplied by the seller. Accepted forms of “proof of ownership” are a Subscription Agreement or Capital Call that you can either upload via your secure virtual data room or send directly via email to your dedicated Account Manager.
 
 

What documents do I need to facilitate the sale?
We recommend having the following documents listed below to optimize the sales process:

Mandatory documents:

    • Quarterly Report
    • Financial Statements
    • Capital Account Statement

Subsequent documents:

      • Subscription Agreement
      • Limited Partnership Agreement (LPA)
      • Private Placement Memorandum (PPM)
Interested buyers will likely request these documents in order to provide accurate pricing on the PE fund(s) listed for sale.
 
For Buyers
 
To browse and participate in the process of buying a secondary stake on Palico, you simply need to be registered as an LP member.
 
What is the process for buying a Secondary on Palico?

Secondary buyers have the option to browse any secondary sales opportunities listed on the platform. Once an opportunity of interest is identified, the buyer can then request access to the sellers virtual data room to review documents to reach the seller through Palico’s encrypted messaging module.

At this point, the buyer can perform due diligence and provide a non-binding offer. It is then up to the seller to choose preferred buyers to move to an LOI agreement before producing a binding offer. The seller ultimately selects a winning bid, where GP approval is requested before proceeding to legal documentation.
 
How do I submit a bid?

All bids should be made through the encrypted messaging module on the platform. It is then up to the seller to decide which interested buyers to engage with in the process. The seller will select preferred bidders who will be asked to sign an LOI and move to the stage of providing a binding offer.
 
What happens once a final buyer has been selected during the bidding process?
 
In order to complete an accepted binding offer, the seller, buyer, GP and their respective legal representative(s) must complete the following documents:
 
  • Term Sheet
  • Sales and Purchase Agreement
  • Transfer Agreement

While legal paperwork will be finalized offline, supplemental documents may be hosted in Palico’s virtual data room as needed.

Palico’s platform combines technological excellence along with regulatory compliance. We continuously improve the platform to ensure the security and confidentiality for all of our users.

Security and Data Protection:

Palico is a cloud-based platform and complies with the industry-standard data security protocols. Our network and infrastructure use several security layers (encryption, authentication, authorization) to guarantee the confidentiality and integrity of all recorded and exchanged data. All security layers are based on widely used and approved protocols in the industry and comply with ISO 27001 certification.

Confidentiality:

Palico offers a virtual data room to share confidential information with selected counterparties. The data room’s access is granted by the seller (in the case of a secondary sale) or by the GP (in the case of fundraising) for chosen requesters.
Palico also provides an end-to-end encrypted messaging module in order to negotiate and discuss transaction details privately.

Anonymity:

Palico is designed to maintain the anonymity of all LP members on the platform:

  1. Palico respects the LP’s preference to remain anonymous on the platform. 
  2. At the sellers discretion, their identity can be kept confidential up until the LOI stage.
  3. In the event the LP selling a secondary fund stake the identity of the seller is kept confidential at the discretion of the LP but does have an obligation to reveal their identity once the process gets to the LOI stage of a secondary sale.

Fairness:

The marketplace is controlled and overseen by our internal compliance team. The compliance team thoroughly monitors member activity to ensure that no member is misusing the information available online.

Transparency and Standardization:

Palico is built on the premise of providing a level-playing field to all its members on the platform. It does so by giving all its members’ access to the same information presented in a standardized form for all investment or sale opportunities available on the marketplace

For Sellers
 
What kind of information do I need to list a stake for sale?
We require a “proof of ownership” to be supplied by the seller. Accepted forms of “proof of ownership” are a Subscription Agreement or Capital Call that you can either upload via your secure virtual data room or send directly via email to your dedicated Account Manager.
 
 

What documents do I need to facilitate the sale?
We recommend having the following documents listed below to optimize the sales process:

Mandatory documents:

    • Quarterly Report
    • Financial Statements
    • Capital Account Statement

Subsequent documents:

      • Subscription Agreement
      • Limited Partnership Agreement (LPA)
      • Private Placement Memorandum (PPM)
Interested buyers will likely request these documents in order to provide accurate pricing on the PE fund(s) listed for sale.
 
For Buyers
 
To browse and participate in the process of buying a secondary stake on Palico, you simply need to be registered as an LP member.
 
What is the process for buying a Secondary on Palico?

Secondary buyers have the option to browse any secondary sales opportunities listed on the platform. Once an opportunity of interest is identified, the buyer can then request access to the sellers virtual data room to review documents to reach the seller through Palico’s encrypted messaging module.

At this point, the buyer can perform due diligence and provide a non-binding offer. It is then up to the seller to choose preferred buyers to move to an LOI agreement before producing a binding offer. The seller ultimately selects a winning bid, where GP approval is requested before proceeding to legal documentation.
 
How do I submit a bid?

All bids should be made through the encrypted messaging module on the platform. It is then up to the seller to decide which interested buyers to engage with in the process. The seller will select preferred bidders who will be asked to sign an LOI and move to the stage of providing a binding offer.
 
What happens once a final buyer has been selected during the bidding process?
 
In order to complete an accepted binding offer, the seller, buyer, GP and their respective legal representative(s) must complete the following documents:
 
  • Term Sheet
  • Sales and Purchase Agreement
  • Transfer Agreement

While legal paperwork will be finalized offline, supplemental documents may be hosted in Palico’s virtual data room as needed.

Palico’s platform combines technological excellence along with regulatory compliance. We continuously improve the platform to ensure the security and confidentiality for all of our users.

Security and Data Protection:

Palico is a cloud-based platform and complies with the industry-standard data security protocols. Our network and infrastructure use several security layers (encryption, authentication, authorization) to guarantee the confidentiality and integrity of all recorded and exchanged data. All security layers are based on widely used and approved protocols in the industry and comply with ISO 27001 certification.

Confidentiality:

Palico offers a virtual data room to share confidential information with selected counterparties. The data room’s access is granted by the seller (in the case of a secondary sale) or by the GP (in the case of fundraising) for chosen requesters.
Palico also provides an end-to-end encrypted messaging module in order to negotiate and discuss transaction details privately.

Anonymity:

Palico is designed to maintain the anonymity of all LP members on the platform:

  1. Palico respects the LP’s preference to remain anonymous on the platform. 
  2. At the sellers discretion, their identity can be kept confidential up until the LOI stage.
  3. In the event the LP selling a secondary fund stake the identity of the seller is kept confidential at the discretion of the LP but does have an obligation to reveal their identity once the process gets to the LOI stage of a secondary sale.

Fairness:

The marketplace is controlled and overseen by our internal compliance team. The compliance team thoroughly monitors member activity to ensure that no member is misusing the information available online.

Transparency and Standardization:

Palico is built on the premise of providing a level-playing field to all its members on the platform. It does so by giving all its members’ access to the same information presented in a standardized form for all investment or sale opportunities available on the marketplace

PALICO, THE PE MARKETPLACE

For Secondary Buyers

We give access to a diversified array of opportunities for secondary buyers within a standardized secondary process