A Secondary SPV is a specialized investment vehicle designed to purchase existing shares in private companies from current shareholders, rather than investing directly in new funding rounds. These vehicles provide liquidity solutions for early employees, founders, and early-stage investors who want to monetize their equity positions before a company goes public or gets acquired.

Secondary SPVs operate in the private secondary market, which has grown exponentially as companies stay private longer and stakeholders seek liquidity options. Unlike primary investments that provide new capital to companies for growth, secondary transactions involve the transfer of existing shares between parties, allowing original shareholders to realize returns while giving new investors access to more mature private companies.

These vehicles can target specific companies, sectors, or investment stages, providing flexibility for both liquidity seekers and investors looking for exposure to established private companies with reduced early-stage risk. Secondary SPVs often focus on companies approaching later-stage milestones, IPO preparation, or acquisition discussions.