Buyouts’ annual report examines the growing role of secondaries within private markets.
Secondaries broke records in 2025, across both deal and fundraising activity, as LPs and GPs alike continue to turn to the market for their liquidity and portfolio management needs. This special report explores the evolution of the GP-led and LP-led market, how North American LPs are refining their approach to portfolio sales, as well how secondaries firms are working to attract talent as more players join the buyside.
INSIDE THE SECONDARIES REPORT
Strong fundamentals continue to drive secondaries activity
Secondaries activity continues to grow as the market gets to grip with macro headwinds, LP concerns and competition for talent.
LPs fine-tune their use of secondaries
Secondaries are evolving from a problem-solving backstop into a strategic tool for North American LPs navigating liquidity constraints and portfolio complexity.
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The secondaries market experienced a record-breaking year globally and in the US, driven by LPs’ overallocation to private equity, GPs’ pursuit of liquidity and increased demand for portfolio rebalancing. As fundraising in the secondaries space continues to outperform expectations and demonstrate resilience, liquidity in the ‘non-traditional’ segment is of interest to many. The report also explores how, amid market volatility and tariff-related uncertainty, new capital sources, emerging tech, evolving buyer-seller dynamics, enhanced back-office operating models and mid-market secondaries strategies are positioning secondaries as a central opportunity for today’s market participants.
As more GPs and LPs turn to the secondaries market amid an ongoing liquidity crunch, weak exit markets and a slowdown in distributions, we explore how improved pricing, compelling supply/demand dynamics and structural innovations are driving transaction volumes and influencing the types of deals getting over the line. The report also looks at the evolution of the buyside and what the growing flow of capital means for one of the most undercapitalized corners of the private markets.
Since the launch of Buyouts Secondaries special in 2020, the secondaries market has grown significantly, largely due to the rise of GP-led and single-asset deals. The market also benefits from liquidity solutions like NAV financing, which is gaining popularity and now used in 20-30 percent of transactions. However, LPs are scrutinizing GP-led transactions, with many fearing they may negatively impact future fundraising. We explore these themes and more in the 2023 Buyouts Secondaries special report.
Five key trends in the rise of secondaries
Market growth is being driven by greater acceptance and increasingly diverse liquidity options.
To sell or not to sell: the LP’s dilemma with secondaries
LPs are facing a difficult choice as they balance liquidity challenges with the deep discounts on offer in the secondaries market.
Key questions: What implications do the SEC private fund reforms have for GP-led secondaries?
The regulator turned its attention to secondaries processes last year as part of a wider set of proposals designed to enhance disclosures in private markets.
Key questions: Do LPs need to conduct due diligence if they are rolling over exposure to a continuation fund?
Decision-making can be a resource-intensive process, although it is one that LPs are becoming more familiar with.
Key questions: Do GPs need to hire a third party to obtain a valuation and fairness opinion?
Proposed reforms in the US aim to make an independent fairness opinion a requirement in GP-led deals.
Key questions: How much does it cost to run a GP-led process and who pays?
The parties that bear the costs can vary according to the structure of the deal.
Evercore: Are single-asset secondaries a new normal in the GP-led space?
Single-asset continuation funds are becoming a disruptive force in the sponsor-to-sponsor M&A market, say Evercore managing director Jim Tilson and vice-president Mike Selverian.
Carlyle AlpInvest on the importance of selectivity in today’s market
Continued volatility is bringing many opportunities for secondaries players. The biggest risk is spreading yourself too thin, says Carlyle AlpInvest’s global head of secondaries, Chris Perriello.
Sixpoint Partners on getting GP-leds done in a downturn
Sponsors need to be realistic about price and commit incremental equity on top of a 100% rollover to stand out in today’s market, says Andrew Gulotta, a partner at Sixpoint Partners.
LPs scrutinize GP-leds
There is misalignment between investors and GPs on the topics of obstacles, red flags and expectations, a Capstone survey finds.
Pinebridge Investments on the comeback of ‘classic’ secondaries
With LPs looking to rebalance, the future of secondaries might look more like the past, with rewards for those GPs willing and able to take a back-to-basics approach, according to Steve Costabile, global head of private funds at PineBridge Investments.
Are LPs missing the continuation fund boat?
Investors that do not participate in GP-led opportunities could be incurring an opportunity cost of at least 15% over the long run.
Secondaries skyrockets to second-most popular strategy in Q1
More capital was closed on for private equity secondaries in the first quarter of the year than for any other strategy outside of buyouts.
The future of GP-led secondaries belongs to specialists, says TPG
As GP-led secondaries continue to grow in popularity, TPG’s Michael Woolhouse and Matt Jones argue that these are a distinct discipline from their LP counterparts, requiring specialization to flourish.
Secondaries Investor Advisory Survey 2023: Advisers choosey with mandates in choppy market
The average number of secondaries transactions advised on sat at 24 in a year where overall secondaries market volume was estimated at around $110bn.
LGT Capital Partners argues primary funds have the edge in the secondaries market
Firms that provide primary fund capital may have a distinct advantage in secondaries investing, say LGT Capital Partners’ Martha Heitmann and Andrew DiGeronimo.
W Capital Partners on why the GP-led market is about more than continuation vehicles
The compelling benefits of the GP-led market have fueled a 5x growth in depth and breadth, and that growth is only accelerating, say W Capital Partners’ David Wachter and Todd Miller.
Whitehorse on how secondaries is an undercapitalized market
Record deployment and fundraising headwinds are leading to limited dry powder, says Whitehorse Liquidity Partners managing partner Yann Robard.
Private secondaries have been on a growth trend for quite some time, but over the past two years in particular, investors have witnessed the incredible growth and maturation of the secondaries market. In part, this can be credited to the strength of the GP-led market – which Evercore says grew to $68 billion in volume in 2021, more than doubling the $32 billion of volume in 2020 – that is opening new doors to liquidity and value creation as private markets fundraises become ever larger and more frequent. Even in the face of significant macroeconomic challenges, the general sentiment across the market is that private secondaries are likely to continue on a path of meteoric growth.
Six key trends shaping the secondaries market
Secondaries continues to attract new investors, particularly as the GP-led trend dominates. Here are six takeaways from our 2022 special report on the market.
Second chances in secondaries
Price sensitive sellers are unwilling to accept material discounts, even in a volatile market. But there are still pockets of value to be found.
Evercore: A booming LP secondaries market is poised for further growth
David Markson, a managing director with Evercore’s private capital advisory, explores the dynamics driving the strong LP secondaries market and how long they are likely to remain in play.
Ares Management: GP-led secondaries is a buyers market
While significant capital has been raised to pursue the flourishing GP-led secondaries opportunity, supply/demand fundamentals remain highly attractive, says Barry Miller, partner in the secondary solutions group at Ares Management.
The LP/GP balancing act
LP sales made a comeback in the PE secondaries market last year, but GP-led sales continued their march to dominance, writes Keith Button.
The search for secondaries talent
Explosive growth has ignited a recruiting war among new and growing secondaries operations.
Neuberger Berman: GP-led deals shift secondaries market dynamics
As supply outstrips demand, GP-leds can prove compelling for secondaries buyers with the right strategy, say Neuberger Berman’s Tristram Perkins, global co-head of secondaries private equity; Frank Guglielmo, principal; and Victor Ko, principal.
Sixpoint Partners on the importance of maintaining balance in a growing market
Interest in GP-led transactions is surging, but investors should maintain a holistic view of the secondaries market, say Sixpoint Partners’ Shawn Schestag and Andrew Gulotta, partners in the firm’s secondaries advisory business.
Why LPs are frustrated with single-asset deals
The secondaries community should take note of investors’ annoyance at unreasonable deadlines and the amount of work needed to make decisions on these deals.
LGT Capital Partners: GP-leds continue to take off worldwide
With so many GP-led deals coming to market, activity drivers vary in key markets, but demand is struggling to keep up, say LGT Capital Partners’ partner and co-head of secondaries André Aubert and partners Andrew DiGeronimo and Brooke Zhou.
On the minds of the Next Gen
Rising stars in the secondaries space share their thoughts on trends dominating the sector and challenges ahead.
Jefferies on navigating GP-led deals in uncertain markets
The secondaries market will continue on its growth trajectory and play an increasingly important role despite the threat of a market correction, says global co-head of private capital advisory at Jefferies, Scott Beckelman.
Whitehorse Liquidity Partners on the path to a $1trn secondaries market
What seems like a bold prediction at first, may well be a conservative estimate, writes Whitehorse Liquidity Partners managing partner Yann Robard.
Credit secondaries take off in wake of covid crisis
Recent events bode well for credit secondaries – a small and rapidly growing part of the overall secondaries asset class.
Manulife on new tools for the private equity allocator
GP-led secondaries join direct investments, co-investments and fund commitments to gain differentiated exposure to the asset class, say Jeff Hammer and Paul Sanabria, global co-heads of secondaries at Manulife Investment Management.
Fort Washington: A holistic approach to secondaries
It is important to be able to flex between traditional LP secondaries and GP-leds, say Fort Washington Capital Partners managing directors Rob Maeder and Steve Baker.
Even as the pandemic was setting in, the market made it clear to us as we prepared the 2020 iteration of the Buyouts Secondaries special report that the secondaries market was ready to take off.
In retrospect, those predictions couldn’t have been more spot on. Even in the face of a global pandemic, 2020 dealflow volumes were the third highest they’ve ever been since the inception of the secondaries market. With a significant amount of pent-up demand for diversified LP portfolios and no sign that the GP-led market is slowing down, 2021 could become a year for the record books.
Five reasons the future is bright for secondaries
Annual deal volume was the third-highest ever last year as the market endured the pandemic. Here are five things to know going into H2 2021.
Adams Street: Get ready for a two-speed market
With GP-led deals taking the spotlight in the secondaries market, Jeff Akers, head of secondaries investments at Adams Street Partners, shares what that could mean for risk-return profiles.
Evercore: Are diversified LP portfolios still core to secondaries?
Diversified LP portfolios have historically comprised the bulk of secondaries market dealflow, but not so in 2020, say Evercore senior managing director Nigel Dawn, vice-president Amy Heinemann and associate Richard Cutshall.
Innovation is in the air for the secondaries market
After an early pandemic lull, the secondaries market has made up for lost time as GP-led deals continue to march forward. But how could new players shape the market? And will LP trades get left in the dust?
Hollyport: As competition grows, where might alpha be found?
In a maturing market featuring multiple new entrants seeking to deploy greater amounts of capital, specialist expertise is key to delivering consistent outperformance, says Hollyport managing partner John Carter.
What’s on the minds of secondaries’ Next Gen Leaders
Over the past year we have witnessed a potential inflection point for GP-led deals as they grew to nearly half of annual volume in 2020. Here, four of Secondaries Investor’s Next Gen Leaders of Secondaries share their thoughts on the future of GP-leds.
Northleaf: Innovative secondaries solutions for mid-market managers
With so many options on how to provide liquidity to investors, Northleaf managing director Matthieu Ducharme details the structures available to mid-market GPs and the related pitfalls to avoid.
Continuation funds: Putting old wine in new bottles
Creativity is key as the secondaries market evolves and managers maneuver to hang on to their favorite assets.
Proskauer: Navigating GP-led liquidity processes
As GP-led processes continue gathering momentum and LP portfolio deals are likely to surge on pent up demand, Proskauer partners Mike Suppappola and Chris Robinson highlight key focus areas for buyers.
GP-led market dives into new waters
A wave of GP-led activity helped buoy the secondaries market last year. Now, co-GP relationships and sponsors of all shapes and sizes using secondaries capital are just around the corner.
Pomona: A fast-growing market brings greater complexity and opportunity
Secondaries GPs have had to get more granular in their approach through the pandemic while the competition continues to intensify, says Pomona Capital founder and chief executive Michael Granoff.
Campbell Lutyens: Get ready for the return of the LP-led secondary
Concentrated GP-led secondaries dominated in 2020, but buyers are seeking diversification once again, says Gerald Cooper, head of Campbell Lutyens’ North America secondaries advisory.
Five big changes to the secondaries market in 2020
The pandemic has certainly impacted the secondaries market – and it hasn’t been all bad.
W Capital Partners: Looking beyond continuation vehicles
Buyout and growth capital investors are embracing a broad range of GP-led solutions, say W Capital Partners managing partner and co-founder David Wachter and partners Blake Heston, Todd Miller and Katie Stitch.
Nine ‘new’ firms making waves in secondaries
M&A advisory businesses and mega-managers are storming a flourishing secondaries industry. We track the key players to watch.
PJT: Preparing for the next generation of secondaries
The secondaries market universe is growing. ‘To boldly go where no person has gone before,’ participants will be judged on market positioning and applicable returns, say PJT Park Hill managing director Darren Schluter and partner David Perdue.
Data room: A record-breaking year for secondaries
The average size of US-based funds nearly doubled year-on-year in 2020, with most closed funds gathering more than they initially sought.
The initial shock of the covid-19 pandemic is wearing off and markets are starting to adjust to the new reality. In the secondaries market, a brief pause to allow valuations to catch up with the new paradigm is expected to be followed by a flurry of activity as liquidity needs drive dealflow.
If the global financial crisis a decade ago taught us anything, it is that even in a steep downturn there is plenty of upside to be captured. Even with slow traditional secondaries dealflow, there’s still plenty of work to be done, and structured transactions offer opportunities for savvy investors to stay in the game.
Five points on the secondaries market: Not all doom and gloom
Activity is largely paused with the global spread of covid-19, but there are bright spots to look out for.
Finding opportunity in a crisis
The economic side of covid-19 has similarities with the global financial crisis, but secondaries now has a bigger toolkit at its disposal to support long-term growth.
Akin Gump: Can secondaries shake off the effects of covid-19?
After an initial secondaries slowdown, the market could recover with a vengeance, say Akin Gump partners Mary Lavelle and Trey Muldrow.
The secondaries market’s black swan
The economic shock caused by the coronavirus is already filtering into the asset class.
As the market dives, secondaries take a safety stop
In two surveys published by Setter Capital in March and April, buyers and fund managers agreed that the secondaries market is in for a slow year.
Five tips for running a fair auction
Running a secondaries auction process that works smoothly for all parties and is not beset by conflicting interests is not easy, particularly in GP-led transactions. Here, advisors share their tips and a buyer gives additional perspective.
Evercore: In a stalled market, preferred equity powers forward
Even with traditional secondaries at a standstill, preferred equity could prosper in the pandemic, write Evercore’s Nigel Dawn and Dale Addeo
Four ‘Young Guns’ share their thoughts on the secondaries market
Alumni of Secondaries Investor's annual grouping of outstanding professionals under 35 share lessons learned and how they've been affected by the covid-19 crisis.
Landmark Partners: Structuring creatively in volatile markets
Changing markets present opportunities for those with the experience and resources to find creative solutions, write Landmark Partners’ Barry Miller, Geoffrey Mullen and Avi Turetsky
How Whitehorse became the most envied firm in secondaries
Whitehorse Liquidity Partners is a rising star of the preferred equity market, led by one of the industry’s most charismatic figures. What’s behind its success? A strategy treated as ‘genius’ by some and with wariness by others.
GP-leds, it’s time to prove your worth
The manager-initiated secondaries market has long touted itself as a creative panacea; in these challenging times the strategy must step up to the plate.
Mega-funds front and center
Driven largely by massive hauls from the likes of Blackstone and Neuberger Berman, 2019 secondaries fundraising eclipsed that of 2018 and average fund size hit a historic high.
Secondaries holds steady amid tariff turmoil
Transaction volumes clocked in at $160bn for 2024, Evercore notes, up significantly from the two preceding years, yet with caution creeping in, plenty of LPs have paused allocations.
US secondaries defy unsettled markets
The US secondaries market may have notched up record levels of deal activity in 2024, but global trade uncertainty and volatility elsewhere in the markets leave the situation delicately poised.
Secondaries find their niche
Rising dry powder and changing attitudes among LPs trading in the secondaries space have laid the foundation for a more diverse and specialized manager pool.
Volatility a trial by fire for evergreen community
Tariff turmoil could battle test the resolve of individual investors and their suitability for the burgeoning community of semi-liquid private markets funds.
W Capital on the secondary blueprint for sponsors
Continuation vehicles remain useful in end-of-life scenarios, but for mid-life investments, direct secondaries may be a more effective solution, say W Capital’s Todd Miller and David Wachter.
PJT Partners on an orderly adjustment
Buyers and sellers may be recalibrating to the recent volatility, but secondaries is a long-term adaptable asset class, say PJT Partners’ Adrian Millan and Brenlen Jinkens.
A second chance for endowments
Yale's sizeable portfolio sale could spur a number of endowments to follow suit – with programmatic seller Harvard in market alongside it.
Dawson Partners on predicting a $200bn year for secondaries
The volume of sellers and capitalization of buyers can drive the secondaries market to reach yet another record year in 2025, says Yann Robard, managing partner at Dawson Partners.
Five things we learned at NEXUS 2025
The secondaries market has been breaking records. In Orlando, PEI editors sat down with industry attendees for a series of video interviews to discuss the key trends shaping the market.
Kirkland & Ellis on European secondaries transformed
As the secondaries market steps into the spotlight, GP-led transactions are redefining how the market will look globally, says Aleksander Bakic, European co-head of liquidity solutions at Kirkland & Ellis.
RSM US on preparing for continued growth in secondaries
The expansion of the secondaries market is encouraging private equity firms to develop scalable and flexible back-office operating models, according to RSM’s Scott Reamer and William Andreoni.
Secondaries Investor CV Deal Log full-year 2024 – updated
Last year saw 70 continuation vehicles close, with scores more hitting the market, according to data gathered by Secondaries Investor.
Fried Frank on market innovations in deal structures and approaches
As the secondaries market matures, new sources of capital and new applications for existing technology are emerging, say Fried Frank’s Andrew Rearick and Andy Varney.
Next Gen Leaders of Secondaries: Class of 2024
Now in its ninth iteration, we reveal this year's most impressive secondaries individuals under 36.
Northleaf Capital Partners on mid-market secondaries thriving despite volatility
During periods of market dislocation, mid-market secondaries can be a compelling strategy for investors to consider, says Matthew Sparks, a managing director at Northleaf Capital Partners.
Enthusiasm for GP-led secondaries has pushed pricing higher over the past year
This has led to ever more ambitious returns targets and hotspots forming in certain industries, Lazard data suggests.
Behind the organization opening doors to students of color in secondaries
In this Second Thoughts podcast, Peter Wright, founder of the Diversity in Secondaries Initiative, discusses why he set up the non-profit and notes its key achievements.
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