Strip sale

A partial sale across several portfolio investments in one transaction. The fund sells part of its interests; the sale need not cover every investment or use the same percentage for each.

Also called Strip sale of a portfolio

Strip sale in round numbers

Hypothetical: a fund sells one-fifth of its interest in each of ten portfolio companies to a secondary buyer. This means 20% of each fund holding, not necessarily 20% of each whole company. The general partner (GP) continues managing the retained investments under the agreed terms. How proceeds are used or distributed, and which control rights remain, depend on the transaction and fund agreements.

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