Join Our Secondary Fund.

Liquidity Fund

Our Liquidity Fund

Investing in direct secondaries

Fiftyfive Capital’s Liquidity Fund provides investors with access to high-quality, exit-ready European technology companies through direct secondary investments. By acquiring existing shares from founders, employees, and early investors, the fund delivers liquidity where it is most needed, while targeting attractive risk-adjusted returns and a shorter path to distributions. 

Currently open for investment

For more information or to discuss the Liquidity Fund, please contact Fiftyfive Capital’s partner Peter Hede. 

phe@fiftyfive-capital.com

THe opportunity

The opportunity

Direct secondaries represent a compelling and fast-growing segment of the private markets. Market uncertainty, delayed IPOs, and longer holding perdios have created a buyer’s market where otherwise strong companies and shareholders are seeking liquidity. 

Our Liquidity Fund focuses on: 

 

  • Mature, VC-backed technology companies with clear exit visibility
  • Typically 2-3 years to exit
  • Enterprise value above €100m
  • Profitable or on a clear path to profitability

The fund invests in up to 15 companies with ticket sizes of €1-5m, building a focused yet diversified portfolio of high-qulity assets. 

 

Why direct secondaries?

Secondary investing offers a differentiated risk-return profile compared to traditional venture capital: 

  • Shorter duration: Target fund life of five Years (+1, +1) with earlier DPI
  • Attractive entry pricing: Acquiring shares at discounts to latest funding rounds
  • Lower risk: Investing after product-market fit, traction, and scale have been proven
  • Clearer exit visibility: Companies are already in exit preparation or late growth stages

Unlike primary investments, secondary transactions do not rely on additional capital injections for growth. Companies fund growth through cash flow and existing balance sheet, while investors benefit from ownership in established, resilient businesses. 

Our investment strategy

We apply a value-driven approach enabled by deep market insight, disciplined pricing, and clear catalysts for value creation. 

What we invest in

  • Proven category winners in vertical SaaS, tech-enbabled consumer, and healthcare services
  • VC-backed companies with strong fundamentals and professional governance
  • All relevant instruments: preferred and common shares, options, and convertibles

How we create value

1. Source proprietary opportunities through founders, VCs, and long-standing relationships

2. Provide liquidity to sellers at a discount to latest valuations

3. Select companies with clear exit paths and limited execution risk

4. Capture upside from both valuation normalization and operational progress toward exit

Why now?

The current market environment has significantly increased secondary deal flow: 

  • Postponed exits have extended holding periods for early investors
  • VC funds nearing expiration are seeking liquidity
  • Founders and emplozees want partial liquidity without selling control or forcing a premature exit

This dynamic has created attractive entry points in an emerging asset class with limited competition and strong pricing inefficiencies. 

Want to hear more about secndaries? Listen to our podcast!

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