Strip Sale

A Strip Sale is a type of GP-led secondary transaction where the general partner sells a portfolio of multiple assets from the fund as a bundled package to one or more secondary buyers. Unlike a continuation vehicle (which typically focuses on 1-3 high-conviction assets), a strip sale involves selling a broader cross-section of the portfolio—often 5-15 companies—as a single transaction. The 'strip' refers to a slice across the portfolio rather than cherry-picking individual positions. Strip sales are typically used when a fund is nearing or past its term and needs to liquidate remaining positions efficiently, when the portfolio has several small positions that are not individually attractive to secondary buyers but valuable in aggregate, or when the GP wants a clean wind-down rather than managing a continuation vehicle. Pricing in strip sales reflects a portfolio discount—the buyer assumes concentration risk and illiquidity but receives diversification across multiple positions. Discounts typically range from 10-40% of NAV depending on portfolio quality and market conditions.