tcr helps to Unlocking Liquidity in Private Markets giving The Extraordinary Power of Stability
Unlocking Value from Private Equity Holdings a very high cost of capital
Many business owners find themselves tied up in private equity commitments that can last 10 to 15 years, limiting flexibility and access to capital. Terrell Capital Referral (TCR) provides a smarter way out—connecting private owners with secondary market investors who specialize in acquiring existing private equity interests. The result: liquidity, freedom, and renewed opportunity.
The Changing Private Market Landscape
For years, private markets have been defined by illiquidity—investors committing capital for long periods with few exit options. That’s changing fast. The expanding secondary market now allows owners and investors to unlock value sooner, rebalance portfolios, and gain access to diversified assets at attractive entry points.
TCR’s acquisition partners focus on strategic liquidity transactions across buyout, growth, and venture capital interests, providing solutions that meet today’s evolving market opportunities.
Creating Flexibility and Long-Term Value
As private equity and venture capital markets mature, secondary transactions have become essential tools for flexibility and price discovery. Through partnerships with secondary funds, GP-led restructurings, and continuation vehicles, TCR helps private owners achieve liquidity while preserving long-term value creation.
Whether you’re looking to exit an investment, recapitalize, or bring in a new growth partner, Terrell Capital Referral delivers structured liquidity solutions—tailored to your goals.
Liquidity Acquisitions
Our liquidity acquisition strategies are designed to provide immediate relief to investors and owners in private markets. By buying out existing investor positions or recapitalizing illiquid assets, TCR helps transform locked-up equity into usable capital today.
Connect with Our Liquidity Team
If your capital is tied up in a long-term private equity structure, TCR can help you regain control and unlock value.
Contact our team today to explore your liquidity options and discover how secondary market solutions can create new financial flexibility for your business.
Liquidity Acquisitions
(Liquidity Acquisitions): are transactions where secondary buyers, funds, or specialized investors purchase existing private market interests or assets to provide liquidity to current holders. These deals enable investors to exit positions early, rebalance portfolios, or unlock capital tied up in long-term investments.
Key Types:
- LP Interest Purchases:
Buying limited partner interests in private equity, venture, or credit funds.
- Direct Secondary Acquisitions:
Buying stakes directly in private companies or portfolios from existing shareholders.
- GP-Led Recapitalizations / Continuation Vehicles:
Providing new capital to extend ownership of key assets while offering liquidity to existing LPs.
- NAV-Based Financing:
Lending against the net asset value of private funds or portfolios to create short-term liquidity.
Purpose:
- Provide exit options for early investors
- Support portfolio rebalancing
- Offer price discovery in illiquid markets
- Enable fund managers to retain and grow valuable assets
Example:
A secondary fund acquires a portfolio of late-stage venture investments from a corporate venture arm seeking to redeploy capital — giving the seller immediate liquidity and the buyer exposure to mature private assets at a discount.
LP-Led vs. GP-Led Secondary Transactions
LP-Led Transactions
Limited Partner (LP)-led transactions occur when existing investors in a fund (the LPs) sell their fund interests to another buyer on the secondary market.
- To provide liquidity and portfolio management flexibility to investors who wish to exit before the fund’s maturity.
Key Characteristics:
- Seller-driven: Initiated by LPs seeking to sell all or part of their fund position.
- Straightforward structure: The buyer steps into the LP’s position, assuming all future capital calls and distributions.
- Motivation: Portfolio rebalancing, capital reallocation, regulatory or accounting needs, or end of investment mandate.
- Pricing: Determined by negotiation, reflecting fund NAV, portfolio quality, and market demand.
- Participants: Institutional investors, secondary funds, family offices, and increasingly, retail-access platforms.
GP-Led Transactions
- General Partner (GP)-led transactions are initiated by the fund manager (the GP) rather than the investor.
These deals provide liquidity options for existing LPs while allowing the GP to maintain control over assets with continued upside potential.
To extend ownership of valuable portfolio companies or to restructure older funds for new capital and time horizons.
Key Characteristics:
- Sponsor-driven: The GP proposes the transaction, often with LP approval.
- Structures: Common formats include continuation vehicles, tender offers, and strip sales.
- Motivation: Retain exposure to high-performing assets, offer liquidity to existing LPs, or recapitalize mature funds.
- Pricing: Typically based on third-party valuations and fairness opinions to ensure transparency.
- Participants: Existing LPs (with the option to roll or cash out), new secondary investors, and sometimes co-investors.
Comparative Snapshot
| Aspect | LP-Led | GP-Led |
|---|---|---|
| Initiator | Limited Partner | General Partner |
| Primary Goal | Liquidity for LPs | Liquidity + Asset Continuation |
| Structure | Simple transfer of fund interest | Continuation fund, tender offer, or recap |
| Control | Buyer replaces LP | GP retains management role |
| Motivation | Portfolio management | Maximize value of existing assets |
| Complexity | Lower | Higher |
| Typical Buyer | Secondary fund | Specialized GP-led secondary investor |
Founders, Management, and Former Employees
- Buyers acquires equity and options in venture-backed startups
Why sell your equity or options?
- Founders and management realize their holdings, while maintaining some equity and upside
Allows management to focus on building a large company by relieving financial pressure
- With company support, current and former employees can sell their shares achieving actual cash value on the shares which can be used as a tool for recruiting and retention
Angel Investors
Buyers acquires individual company holdings and entire portfolios, and provides creative liquidity solutions for follow-on financing requirements
What is the benefit to investors?
- Allows angels to realize gains and avoid the risk of dilution
- Provides follow-on capital to protect ownership without committing their own additional capital and maintaining strong commitment to founders
General Partnerships
Buyers acquires individual company holdings, entire portfolios, LP interests, provides tail-end fund offers, as well as creative liquidity solutions for follow-on financing requirements
What is the benefit to GPs?
- Allows GPs to distribute cash proceeds to investors before actual exits occur improving returns for your investors
- Provides GPs with a solution for LPs that might be seeking liquidity mid-life, or are simply problematic
- Offers the GP, the option to refresh their LP base and extend the fund with a new long-term partner
Allows follow-on capital to funds that are fully or nearly fully called that allows managers to protect ownership in their most promising companies while displaying a strong commitment to their founders
Limited Partnerships
Buyers acquires interests in venture funds
What is the benefit to LPs?
- Generate liquidity from an illiquid asset with an uncertain liquidity timeline
- Rebalance asset portfolios in times of market volatility
- Offload any unfunded commitments in the event of liquidity constraints
Terrell Capital Referral 