No, secondary investments carry exactly the same risk as investing in primary offerings. The type of investment is very illiquid and private companies can take years before reaching a point of exit, if an exit happens at all. If the Company goes out of business, all investment is likely to be lost. You can learn more about the risks associated with investing in this asset class here.

A key difference, however, is that the secondary transactions typically occur in later-stage, established businesses which are more likely to be well-funded, well-respected brands that have gained considerable traction and have already seen early success. In principle, this does not make secondary investments any less risky than primary investments, and you will still need to conduct your own due diligence and ensure you are comfortable with the risks associated with investing in a private company.

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