Stuck positions
What is a zombie LP interest?
A zombie LP interest is an LP interest in a fund past its stated term where the GP isn't winding down in any meaningful way, distributions have stalled, and there's no credible secondary bid. It's still marked somewhere on a balance sheet, but it's not actually liquid.
The fund life is over, or clearly past useful life. The GP has gone quiet. The large secondaries funds that show up in every shortlist won't underwrite a single small interest, so the position just sits there, eroding.
We see this pattern every week. The owner usually knows it's stuck. They just don't know what to do about it, because the fee math on a small interest doesn't carry an hourly retainer that produces a useful memo, and nobody ends up accountable for moving it.
If you're holding one of these, the first step is a one-page assessment: what rights exist, what realistic recovery looks like, and what the next move costs. We don't bill by the hour for that work.