Strip sale

Worked example

A worked example of a strip sale across a portfolio (illustrative figures):

1. A fund holds eight portfolio companies with a combined NAV of $200 million. Rather than selling any single company outright, the GP sells a 15% strip across all eight simultaneously to a secondary buyer.
2. That 15% strip is worth $30 million (15% × $200M), which the GP distributes to LPs as cash — directly improving the fund's DPI without triggering a full exit (and its associated loss of control) on any one asset.
3. The buyer gets diversified exposure across eight companies in a single transaction, rather than negotiating eight separate deals — efficient for both sides, which is part of why strip sales have grown alongside GP-led continuation funds as a standard liquidity tool.
4. Because the GP retains 85% of each position, it keeps its existing governance rights and board seats across the whole portfolio — a key difference from a continuation fund, where specific assets move entirely into a new vehicle.