A secondary transaction occurs when an investor purchases warrants/options/shares or any other form of current or future ownership of a stake in a private company (meaning not publicly traded) from holders of such securities. In most cases this would be a founder, early employee, ex-employees or early investors in the business.
In the private markets space, investors generally encounter two types of secondaries transactions.
The first one is when one investor buys a stake in a private company from another investor: for example, an investor buys shares of XXX company from a current shareholder of that XXX company.
The second type is when an investor buys a stake in a private equity fund from another investor: for example, an investor has invested into YYY fund and sells off his stake for a certain price based on potential future distributions.
Giano will be focusing on the first type of transactions.