Need for liquidity set to drive secondary deals in the Indian market

Secondary deals are driven by the need to create liquidity, so that fund managers can move onto the next fund

One of the best ways for venture capital (VC) firms to realise value is to take a company public. However, it often takes time for an investment to mature, while a VC fund has a fixed life of 10 years. By the end of which, it has to start returning capital to its investors, called LPs (Limited Partners). 

Another way to find an exit is to sell the firm to another VC or private equity (PE) investor. This PE to PE deal is called a secondary sale. As VCs which are close to their fund life look for liquidity, secondary deals