Optimizing Secondary Market Sales

Should we sell a partial stake of our active companies in the secondary marker? Tactyc can help you plan for these situations.

The Theory

Many fund managers that participate in the secondary market, run analyses on what is the lowest price they could sell a company in the secondary market today, without impacting their fund's IRR. If this sale price is lower than the current post-money valuation of the company, this creates an actionably opportunity for the fund to generate DPI today while also being accretive to the fund's IRR.

Tactyc automatically "backsolves" for each company's optimal sale price today and the results are summarized under Insights > Minimum Partial Sale Valuation section.

Learn more here for the underlying math behind this analysis.

Minimum Partial Sale Valuation

This chart will show the results of the mimum sale valuation calculation. For each portfolio company, Tactyc will summarize:

  • Current Holding Period

  • Minimum Sale Valuation: This is the price a company could be sold at in the secondary market withouot impacting the fund's IRR

  • Current Valuation

  • Indicator whether the Minimum Sale Valuation is a discount or premium to the current valuation

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