LP Liquidity & Redemption Options
Three pathways to liquidity, each delivering significant social impact through employee ownership transitions and capital recycling
LP Return Multiple (MOIC) Over Time
Full Lifecycle
Secondary Market
GP-Led Continuation
Option 1
Full Lifecycle
Patient Capital, Maximum Return
Target MOIC
7.0x – 8.0x
Timeline
15 – 25 yrs
Liquidity
Annual distribs.
Impact
Full cycle EO
Option 2
Secondary Market
Guaranteed Floor, Strong IRR
Target MOIC
2.0x – 3.0x
Target Net IRR
~20%
Liquidity
~10 years
Post-Return
Capital recycle
Option 3
GP-Led Continuation
Structured Exit, Similar Economics
Target MOIC
2.0x – 3.0x
Target Net IRR
~20%
Liquidity
~10 years
Post-Return
Capital recycle
Social Impact: All Options Deliver
Every pathway generates significant social impact through employee ownership transitions. With Options 2 and 3, once LP return targets are met, surplus capital is recycled into additional acquisitions and potentially distributed directly to employees across all portfolio companies.
Option 1
Full lifecycle employee ownership transition
Maximum long-term value creation for employees
Deepest governance and culture transformation
Options 2 & 3
Strong EO transitions with guaranteed LP floor
Surplus capital recycled into new acquisitions
Potential direct distributions to employees
All Options
SME succession solved, jobs preserved
Broader employee wealth participation
Aligned incentives across stakeholders