Venture capital secondaries is the most compelling opportunity in global private markets right now, with Asia, especially Southeast Asia and Australia, emerging as the epicenter for potential of value creation and liquidity. As dry powder, exit bottlenecks, and a liquidity crisis reshape the VC and PE landscape, investors now have a unique window to capture the next wave of transformative returns while actively de-risking their portfolios.
Traditional venture capital in Southeast Asia and Australia has largely failed. It has failed to deliver the outsized returns investors demand for having their money locked up in such a risky asset class. Yes VC-backed secondaries gives venture capital exposure to investors by de-risking investments by picking market leading companies who are closer to a liquidity event.
For investors seeking exposure to the high-growth venture capital markets of Southeast Asia and Australia, secondaries offer a uniquely advantageous entry point that mitigates many of the traditional risks associated with VC investing. Unlike primary investments in early-stage funds, secondaries involve purchasing existing stakes in mature companies and portfolios, providing immediate visibility into actual company performance rather than betting on unproven projections.
The risk-adjusted returns of secondaries are compelling in this region due to the significantly reduced J-curve effect that plagues traditional VC fund investments. When buying into established companies or portfolios, investors gain exposure to companies that have already survived the critical early years—the period when 70-90% of startups typically fail. In fast-evolving markets like Indonesia, Singapore, Vietnam, Philippines and Australia, this de-risking is invaluable, as investors can evaluate actual traction, revenue growth, and market fit rather than relying solely on founder promises and pitch decks. Additionally, secondaries often trade at discounts to net asset value, providing a built-in margin of safety while still capturing the upside from successful portfolio companies approaching exit events.
Liquidity considerations further enhance the appeal of secondaries in the Asia-Pacific venture ecosystem. Primary VC funds typically lock up capital for 10-12 years with minimal interim liquidity, but secondary purchases come with shorter duration profiles as portfolio companies are further along their lifecycle trajectories. This is particularly relevant in Southeast Asia and Australia, where exit markets have matured significantly over the past five years, with increasing M&A activity from strategic buyers and more robust IPO markets in Singapore, Australia, and increasingly in markets like Indonesia and Vietnam. Investors in secondaries can therefore capture returns more quickly while maintaining exposure to the region’s digital economy growth, fintech innovation, and expanding middle-class consumption patterns.
Anyone sitting on the sidelines risks missing out on the most attractive, de-risked venture capital value creation cycle—perhaps ever seen in Asia-Pacific. Smart capital is stampeding into this space, eyeing shorter duration, superior upside, and real downside buffers. The rare confluence of discounting, growth, and structural liquidity in Asian secondaries won’t last forever—don’t get stuck watching the next round of outperformance from the sidelines. Now is the time to move