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, sizes, vintages, geographies 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 decide 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 opportunities available.
Why BUY
on the Secondary Market
Portfolio Diversification
Increase portfolio 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
Benefit from visibility on underlying assets – especially for older funds – as capital is invested in known companies, mitigating blind pool risk.
Faster returns
Mitigate the J-curve effect by acquiring a fund interest at a later stage of its life, cutting down the time needed until cash is returned to the LP.
What our secondary marketplace users
have been saying
Catalus Capital
Multiplicity Partners
VCFA
WM Partners
Bee Alternatives
Decalia
Flashpoint
“We at Catalus Capital have found Palico to be an innovative platform helping us source differentiated investment opportunities. The Palico team is continually pushing the boundaries of applying technology to improve the liquidity of private capital.”
“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.”
“We like Palico as a discovery tool as it has allowed us to learn about new funds we have never crossed before. This is especially useful for us as a small team — to have access to & explore a wide range of opportunities, all on one platform.”
“We applaud Palico’s approach and achievement in developing the effective digital solution to match the buyers and sellers with smaller size transactions, where there is an obvious gap in the market. The UI/UX design of the platform is very impressive. Not to mention that the team of Palico is very professional and dedicated to supporting each transaction.”
“Palico and its team understand the needs of professional secondary buyers like us well, and as such have created an intuitive platform and a smooth experience. Since being on the platform, we have been introduced to interesting and consistent deal flows on Palico, including from our focus area in Asia.”
“Palico has developed a very useful platform, with a smooth user experience and a growing inventory of opportunities, to match buyers and sellers in secondaries transactions that otherwise might not get done in a traditional process.”
“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.”
Marek J. Olszewski, Managing Partner Catalus Capital
Andres Hefti, Partner at Multiplicity Partners
David Tom, Co-Managing Partner VCFA
Tokyo-based Growth & PE Secondary Investment Firm
Yuliang Chen, Founding Partner of Bee Alternatives
Reji Vettasseri - Lead Portfolio Manager Private Markets Funds and Mandates
Igor Bilous, Managing Partner of Flashpoint
FAQ
Who should use Palico's Secondary Marketplace?
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.
- Competitive Bidding Process: small secondary sellers benefit from a global marketplace featuring secondary buyers ranging from large secondary funds to smaller secondary specialists.
- 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.
- 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.
- No Obligation to Sell: there is no obligation to sell — the seller can close their listing at any time without any fees or penalty.
- 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.
- 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.
What kind of fund stakes can be sold on Palico’s Secondary Marketplace?
- Single LP stakes
- Portfolio of LP fund stakes
- Co-investment opportunities (case by case basis)
- Fund stakes ranging from $1-100M (exceptions can apply)
How Does Palico's Secondary Marketplace Work?
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)
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.
- 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.
Security / Data Protection
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:
- Palico respects the LP’s preference to remain anonymous on the platform.
- At the sellers discretion, their identity can be kept confidential up until the LOI stage.
- 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
