Secondaries investor SecondQuarter Ventures launches new fund to tap $4 billion liquidity demand

Sydney-headquartered SecondQuarter Ventures, the only dedicated secondaries fund in Australia and New Zealand, is eyeing an estimated $4 billion in private market liquidity demand over the next three years as it receives early commitments for its third fund.

Founded in 2019 and with stakes in such fast-growing Australian scale-ups as Fleet Space Technologies, Go1, Roky, Canva, Airwallex and Bare, SecondQuarter Ventures currently has $200 million in assets under management (AUM) and has established itself as a go-to secondary investor in the region.

The new fund builds on the success of its two predecessors, which the group claims have delivered top-quartile performance and are already returning cash to investors, with more on the horizon with anticipated initial public offerings (IPOs) across its portfolio.

SecondQuarter has seen liquidity demand to its firm increase five times that of its second fund, reflecting the maturation of the Australia and New Zealand ecosystem. As exit timelines extend, founders are increasingly turning to the secondary market as a means of delivering returns to early investors and employees.

"Australia and New Zealand have proven at a global level that they can produce world-class companies, attract leading talent and scale innovation," says SecondQuarter Ventures managing partner Ian Beatty.

"Through our third fund, we are meeting this inherently human demand head-on, giving founders, their teams and early investors a more flexible pathway to realise value in their share options to meet the demands of their day-to-day lives."

Leigh Jasper, the co-founder of Aconex who is a partner and chairman at SecondQuarter, appreciates the support of new and existing investors who have already made commitments to the fund.

"Their backing is a testament to our unique model and the strength of our team, and positions us to continue investing in the next wave of global technology leaders," Jasper says.

"As an exited founder, I have been in those trenches and know the deep personal sacrifice founders and early employees make to build their companies.

"But life milestones – like buying a house or funding your children’s education – don’t always align with traditional 10-year exit timelines. And they shouldn’t have to when a growing secondaries market offers them the optionality and financial flexibility they deserve."