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The approach

Why secondaries
outperform

We enter where the j-curve ends — not where it begins. By acquiring proven equity stakes at a discount to NAV, we compress both risk and time-to-return. The interactive explainer below walks through the structure, the mechanics, and the structural gap we are purpose-built to close in MENA.

01 Skip the J-Curve — enter after the pain
Primary funds lose value before they create it — fees, failed early bets, slow deployment. Secondaries investors enter after the trough, when companies have a track record. A purchase discount means you are already in the money from day one.
Primary fund
Secondaries entry
Illustrative only. Not a guarantee of future performance. Secondaries entry at year 3–4 equivalent. Discount assumes 25% below last reported NAV.
02 The transaction — buyer, seller, founder
A secondary transaction transfers an existing equity stake between parties. Early investors and founders who need liquidity sell at a discount to NAV. The secondary fund acquires those stakes below market, improving both entry price and return potential. At exit, LP proceeds are distributed — typically 3–5 years sooner than a primary fund.
Seller
Early Investor
Needs liquidity
Cannot wait 5–10 yrs
Stake
15–35% disc.
Secondary Fund
Acquires at NAV − 15–35%
Discounted entry
Risk-adjusted return
Cash
now
Seller / Founder
Liquidity Event
Partial exit
Stays at company
Exit
proceeds
At Exit — M&A / IPO
LP Returns
Compressed hold
Higher multiple
03 Discount mechanics & MENA context
How the discount re-prices risk
Adjust the three variables to model entry economics.
Discount25%
Exit mult.2.0×
Hold (yrs)4 yrs
$0.75
Entry / $1 NAV
33%
Margin of safety
2.67×
MOIC at exit
28%
Implied IRR
MOIC = exit multiple ÷ entry cost. IRR assumes single cashflow at end of hold period.
Why MENA — why now
The MENA secondary market is structurally early. The same dynamics that built the US secondaries market post-2008 are playing out in the Gulf today.
MENA VC deployed 2015–2024>$10B
Median time to exit (MENA)8–12 yrs
Dedicated secondaries funds in regionNear zero
Typical secondary discount (MENA)15–35%
Liquidity gap — capital locked in portfoliosStructural
Over $10B has been deployed into MENA tech ventures since 2015, yet exit pathways remain limited and the secondaries infrastructure that exists in the US and Europe is largely absent. Key Capital is purpose-built to close this gap — providing liquidity where none exists, at terms that work for founders, early investors, and LPs alike.
For illustrative purposes only. Not investment advice. Past performance is not indicative of future results.
Key Capital · WeWork Hub71, Al Khatem Tower, ADGM Square, Abu Dhabi, UAE · www.key.capital
info@key.capital

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