What is a stapled secondary?

The staple brings the manager fee-paying capital, a benefit selling LPs do not share. ILPA’s 2023 continuation fund guidance lists stapled financing among the economic incentives to the GP that the LPAC should review, and says the LPAC should be told of any special terms for buyers, including stapled financing, and of the fees and carry on any primary capital committed as a staple. Its October 2026 update says roll elections should not be conditional on commitments to other funds the GP manages.

Say a buyer pays $200 million for LP stakes in a manager’s older fund and, as part of the deal, commits $50 million to the manager’s new fund. The $50 million is the staple, and the manager earns fees on it. Simple example. Terms vary by fund.

It links the sale to the manager’s fundraising, so selling LPs and the LPAC look at whether the staple affected the price they were offered.