Secondary Fund is similar to Fund
Unlike fund of fund managers, which generally invest in blind
pools, secondary buyers can evaluate the underlying companies
that they are indirectly investing in.
Secondary fund is Partnerships that specialize in purchasing the
portfolios of investee company investments of an existing
venture firm. This type of partnership provides some liquidity
for the original investors. These secondary partnerships,
expecting a large return, invest in what they consider to be
undervalued companies. The big difference is that they are
buying their interests in a fund after the fund has been at
least partially deployed in underlying portfolio companies.