Stapled Secondary
Private Equity Secondaries
Definition
A stapled secondary combines the purchase of an existing fund interest or asset exposure with a new primary commitment to the same manager or related strategy.
Why it matters
Staples can improve manager fundraising and buyer allocation access, but they complicate price discovery because the secondary and primary economics are linked.
Common misconceptions
- •The best headline price may depend on the value of the primary allocation, not just the secondary asset.
- •A staple can introduce conflicts if existing investors are pressured to accept terms that benefit a new fundraise.
Technical details
Economic Linkage
Buyers may accept lower secondary returns in exchange for scarce primary access, fee concessions, co-invest rights, or relationship value.
Review Points
Separate the secondary valuation from the primary commitment, including fee load, lock-up, unfunded exposure, allocation rights, and governance approvals.