Private equity secondaries market. Your partner in private equity secondaries.

Private equity secondaries market , Private Credit, Infrastructure, and Venture Capital secondaries) and new entrants will inject more capital into the market, setting the stage for continued growth. Jul 16, 2024 · This article explores the growing trend of private equity secondaries as a smart investment option for those looking to diversify their portfolios and achieve increased liquidity, highlighting the benefits and efficiencies compared to primary market investments. Our investment platform The secondaries market has developed into a key source of liquidity in the private markets. Instead, it relies on control. Nov 23, 2023 · Private markets have been faced with the toughest conditions since the global financial crisis. Your partner in private equity secondaries. Learn about key growth drivers, transaction types, and market outlook as this segment continues to expand in 2025. Jan 13, 2025 · Explore the growth of the secondary market in private equity and discover how secondaries are redefining investment strategies with enhanced liquidity, reduced risk, and greater transparency. Dec 18, 2024 · The secondary market in private equity involves the buying and selling of pre-existing investor commitments in private equity funds. May 25, 2023 · SEVEN THINGS INVESTORS SHOULD KNOW ABOUT THE PRIVATE EQUITY SECONDARY MARKET Private equity (PE) secondary funds can provide several benefits to investors, including an accelerated pace of distributions relative to traditional primary PE fund invest-ments. In finance, the Private Equity Secondary Market (also often called Private Equity Secondaries or Secondaries) refers to the buying and selling of pre-existing investor commitments to private equity and other alternative investment funds or the underlying private equity assets (e. A secondary market is a marketplace where investors can exchange company shares. In 2025, secondaries face a dynamic market environment as more conventional exit activity—such as M&A, sponsor-to-sponsor transactions, and even IPOs—is expected to accelerate even as trade war concerns and geopolitical risk are likely to remain persistent Sep 7, 2022 · The secondaries market has emerged out of its infancy and has grown in both size and complexity 1 as investors seek more certainty in their exposure to private equity. Private Equity Secondaries: How the Pandemic Has Changed the Market—Again It is our view that the uncertainty of the coronavirus pandemic has led to a flight to quality in the private equity secondary market, as many buyers have focused on transactions where they are able to conduct thorough due diligence on underlying companies in pursuit of resilient, growing businesses at attractive Jan 17, 2024 · Lexington Partners' eye-catching $22. Introduction Global secondary volume soared to a record high in 2024, fueled by unprecedented levels of dedicated capital, continued improvement in secondary pricing and a strong desire from both LPs and GPs to generate liquidity and accelerate distributions. By Hugh MacArthur, Brenda Rainey, Or Skolnik, and Alexander De Mol 6 min read } Report Have Secondaries Reached a Tipping Point? Aug 29, 2024 · Secondaries are deals where a private equity investor buys an investment from another private equity investor. We’ll explain what Section 1: Private Market Secondaries – Potential Benefits to New and Experienced Private Market Investors Definitions Private market secondaries involve the sale and purchase of investors’ existing interests in illiquid alternative investment funds, and sometimes in portfolios of direct investments in private companies or other illiquid Jul 22, 2023 · This entry reviews the existing academic literature, and discusses recent trends, surrounding private equity secondary markets. This article delves into the intricacies of the PE Oct 29, 2021 · In an illiquid world of private equity, the secondary market is how investors can cash out their assets without waiting for the fund’s life to end. Sep 22, 2024 · Private equity secondaries involve purchasing existing investments in private equity funds, offering liquidity and diversification opportunities. Once considered a niche corner of the alternative investments landscape, it has matured into a robust and dynamic market offering liquidity solutions for existing PE investors and attractive opportunities for buyers. Sep 1, 2023 · The private equity secondary market has seen lower transaction volume in 2023; however, catalysts still appear to be present for both LP-led and GP-led opportunities. Watch Our Secondaries Market Mar 27, 2024 · Learn how secondary funds can provide private equity exposure with a faster distribution pace and return of capital. The secondaries market continues to provide investors with opportunities as the overall private equity asset class grows, forming the pool of potential secondary investments. Coller Capital's expertise provides liquidity solutions that advance institutional investment portfolios. private equity market. Sep 8, 2025 · Private market secondaries have exploded in recent years. What' s more, the geography of the secondary market has broadened. Mar 3, 2025 · The private equity secondaries market has evolved from a niche liquidity tool to a distinct pillar of the private equity market. Feb 6, 2025 · Discover how the private equity secondaries market is rapidly evolving, offering investors liquidity, diversification, and attractive pricing opportunities. There is a compelling case for private equity secondaries serving as the cornerstone of a core/satellite evergreen model. The desire for liquidity has seen innovation in deal structures and investment fund strategies with a range of alternative types of investment growing increasingly popular. Typically, limited partners transact directly with a fund, investing in the fund upon formation In this episode, Bridget Walsh, EY Global Private Equity Leader, will be discussing the role of secondaries in the private equity market with Mark Benedetti, Co-Head of Ardian US. May 25, 2023 · The private equity secondary market can offer investors efficiency and access that is unavailable elsewhere in the private investment universe. , credit secondaries). As today’s investors navigate a richly valued, low yield environment against a backdrop of global Mar 29, 2023 · The private equity market is constantly evolving. Explore the key risks and opportunities across private equity, PE secondaries, private credit, and commercial real estate in our 2025 private markets outlook. The largest one to watch is Ardian Secondary Fund IX,… May 29, 2025 · Private equity is at a turning point, with investors and advisors exploring the best ways to allocate across sub-strategies. Nov 3, 2022 · Although private equity investments often demand significant capital, there are still ways for individual investors to get exposure to the market through registered offerings. The secondary market continued to evolve, experiencing increased utilization of innovative transaction structures and an influx of new What Are Private Equity Secondaries? Private equity secondaries refer to the buying and selling of existing commitments to private equity funds. This surge underscores the market’s expanding strategic role in private capital, as both sponsors and investors increasingly rely on secondaries to navigate liquidity challenges in a persistently complex macro environment. The private equity secondary market has started 2025 on the same high note with which it closed 2024. The Evolution of the Secondary Market Like any market, the secondary private equity market connects buyers and sellers, allowing the former to access private equity limited partnership positions beyond the initial investment period, and the latter to access liquidity along an earlier time frame. Jun 5, 2024 · Learn about the private equity secondaries market. In this Jan 27, 2025 · Secondhand trades for private-markets funds handily topped $150 billion in 2024, thanks partly to strong demand from private-equity investment vehicles aimed at individual investors, secondary Nov 14, 2024 · Private equity secondaries have become increasingly popular for allocators due to their various benefits, mainly their ability to provide liquidity. The current market environment has fueled significant growth in two additional types of private equity investments: secondary transactions and co-investments. The secondary market provides liquidity, higher and faster returns, and risk mitigation for investors. With record deal volume expected in 2025, secondaries are transforming from a niche solution into a mainstream tool for portfolio management and value creation. Secondary transactions are either GP-led or LP-led in general. The root of the private equity secondaries market dates back to the 1980s, when a handful of firms started selectively purchasing private equity interests in leveraged buyout and venture capital funds. Jul 1, 2025 · The private equity (PE) secondaries market has experienced significant growth and evolution over the past two decades. It is a secondary transaction in the private equity (PE) market where an existing exposure in a The secondary market in private equity refers to the buying and selling of PE fund interests (also called limited partnership interests) after the original investment was made. Jan 6, 2025 · Secondaries volume to maintain strong pace on back of expected record year Secondaries professionals and LPs dust off their crystal balls to give their views on what will drive the market over the next 12 months. According to the 2024 edition of the Secondaries Investor 50 ranking, compiled by Private Equity International and affiliate title Secondaries Investor, the top 50 secondaries firms raised a total of $473. Jun 3, 2025 · Private equity secondaries have historically delivered compelling risk-adjusted returns with lower loss rates than many other private market strategies. Structural perks like J-curve mitigation and the elimination of blind pool risk, highlighted in our whitepaper “Secondaries in First Place,” further add to the appeal. We cover monthly deal activity and size, fundraising, exits, leveraged loans, and a look ahead. Sep 14, 2023 · Explore the nuances of private equity secondaries with Allvue's comprehensive guide. Mar 26, 2025 · The private equity secondaries market has witnessed explosive growth in recent years. There are 134 secondary funds in the market seeking fresh capital. Here’s what’s behind 3 common myths. Sep 2, 2024 · Secondaries investors continue to defy fundraising obstacles amid increasing demand for more specialisation within the market. Mar 26, 2025 · Discover the rise of private equity secondary markets, how they provide liquidity, and their growing role in the private equity investment landscape. ¹ This significant growth is indicative of the The private equity landscape has undergone a significant transformation over the past decade, and especially over the past several years, with secondaries becoming an ever-more mainstream liquidity solution and accounting for $100bn+ in transactions every year since 20211. It implies that stock transactions between investors are unrestricted and independent of the issuing firm. These investments offer unique and important benefits to investors: May 26, 2025 · The private equity secondary market refers to the buying and selling of commitments to private equity commitments during a fund’s lifetime. Apr 17, 2025 · Private equity is facing lackluster fundraising and few options to sell portfolio companies — but that has been a tailwind for the secondary market, which investors use to sell their stakes in Mar 6, 2025 · The secondary market in private equity saw record growth in 2024 and is expected to continue flourishing in 2025, driven by increased liquidity and portfolio management options. For more information on private equity secondaries, or to discuss any of the topics referenced in this article, please reach out to any of our authors or key contacts below. What are Private Equity Secondaries? The private equity secondary market refers to the buying and selling limited partner interests and remaining commitments to private equity funds during Apr 23, 2025 · The private equity secondary market, where investors buy and sell existing stakes in funds (LP-leds) or portfolios of direct investments (GP-leds), is thriving. Nov 21, 2024 · The private equity secondaries market is surging, with transaction volumes projected to hit $150 billion this year. We believe partnering with a knowledgeable and experienced investment team is an important part of finding success within this dynamic and evolving asset class, and we answer seven key questions reviewing private equity secondary funds and their benefits. g. Secondary funds, commonly referred to as secondaries or continuation transactions, purchase existing interests or assets from primary private equity fund investors. They may want to liquidate their interests in the PE fund before the commitment period is over. The private equity secondary market has witnessed substantial growth and evolution over recent years, emerging as a vital component of the broader private equity ecosystem. Whereas trading in the secondary market was traditionally seen as a potential sign of financial troubles, it’s now broadly accepted as Jul 23, 2025 · Compared with private equity secondaries, the venture secondaries market is relatively unknown to GPs and LPs alike. This is Secondary-focused funds are also on the rise, with ever-larger pools being raised to invest in secondaries. Fundraising for private equities secondaries rose 159 percent from 2022 to 2023. In recent years, secondary transactions have been increasingly seen by limited partners (LPs) and general partners (GPs) as an alternative to the traditional primary market and are now a mainstream pillar of the private equity landscape. Apr 18, 2025 · So what does this mean for Fund Finance? As secondaries market volumes continue to increase, we are similarly seeing an increasing use of debt and leverage across secondary transactions. Large team of specialists focused on private equity secondary advisory – broker and intermediary of buyout funds, venture capital, real estate funds, hedge funds, and direct investments. Technological advancements promise to accelerate this trend, making the market more transparent and efficient, and offering investors the chance to diversify their portfolios and manage their liquidity. The aggregated capital commitments are managed by a General Partner (“GP”) who is responsible for managing the May 14, 2024 · Secondaries are nearly as old as private equity itself, but their role has significantly evolved over the years. Primary market purchases involve buying shares directly from a company during early funding rounds, while secondary market purchases allow you to obtain shares from existing shareholders. In this piece, we review Nov 10, 2023 · Initially the secondaries market was considered as a niche in the private equity market. Unlike the primary market, where securities are created and offered to the public, the secondary market is where existing ownership stakes in private companies are bought and Mar 29, 2023 · Growth in secondary market opportunities has been fuelled in part by strong demand in the primary private markets, which have raised $3. , limited partners) to new investors. Depending on The PE secondary market enables the buying and selling of established funds and holdings to other private equity investors. Feb 6, 2025 · Private Equity Secondary Investing can enhance liquidity and rebalance portfolios by acquiring existing fund interests or select private equity assets. While the secondary transactions market encompasses various type of Jun 30, 2024 · In the latest Alternative Allocations podcast the critical role of secondaries in the private equity ecosystem are discussed, emphasizing their importance in providing liquidity. The buzz surrounding the secondary market suggests another boom year for this asset class. By offering differentiated access to seasoned portfolios, secondaries can complement primary private equity investments while addressing some of their inherent challenges. Sep 2, 2024 · Despite a challenging fundraising landscape, the secondaries market is still on track for a record year. The advantages of secondary market investments are reduced blind pool risks, a reduced J-curve effect, access to potential discounts, and liquidity creation. Jan 14, 2025 · The secondaries market is experiencing unprecedented growth, driven by a surge in demand for liquidity and the expansion of the private equity market. Like other private market strategies, secondary funds often acquire illiquid stakes in private companies, which most likely results in illiquidity or more limited liquidity compared to public Aug 7, 2025 · The private equity secondaries market is experiencing explosive growth, driven by liquidity needs among LPs and strategic extensions by GPs. 2 Yet, with the growth of less conventional transactions and an unprecedented amount of capital flowing into the space, 3 can the return drivers that precipitated the growth of secondaries persist? Mar 3, 2024 · Secondary private equity, also known as the secondary market or private equity secondaries, offers a unique opportunity for investors to trade existing interests or assets in private equity and other alternative investment funds. Jul 16, 2025 · Secondaries are now a cornerstone of private market investing—but remain widely misunderstood. To avoid confusion, when making reference to both private equity secondaries and direct investments into private equity funds, these direct investments are often known as “primary” private equity. This article dives deeper into the market mechanics and explores its many benefits - both for buyers and sellers. From boutique private equity firms like Banner Ridge Partners to large managers like Apollo Global Management, billions of dollars have been raised and Oct 1, 2024 · Due to historically lower volatility, broad diversification and access to market-leading managers, private equity secondaries can play a complementary role to public equities and can potentially grow durable wealth over time. Discover the difference between LP-led and GP-led transactions. In addition, they can help investors enter new strategies, access top managers, and reduce blind pool risk. Once used only sparingly as a seller’s last resort, the private equity secondaries market has since evolved into a diversified $62-billion-a-year market with substantial transaction volume, and a strategic opportunity for Global Private Equity Report Have Secondaries Reached a Tipping Point? Private equity needs liquidity. So, they sell their stake to secondary Private equity secondaries relate to the purchase and sale of pre-existing stakes in private equity funds or direct investments in privately held firms. 7 billion secondary fund gave 20204 a kickstart. Disadvantages of the secondary market include The private equity secondary market is continuing to develop and evolve as an asset class, with transactions increasing year on year. Apr 11, 2025 · The secondary market in private equity represents a dynamic and increasingly significant segment of the financial landscape. GP-led secondaries transactions in particular have emerged as a pivotal development, with these deals making up around […] About This Report This report represents Jefferies’ semi-annual review of the secondary market. May 20, 2025 · Regent Peak continues to have conviction in adding private equity, specifically secondaries, to an overall portfolio construct. Oct 30, 2025 · Private equity secondaries can present a compelling opportunity, but it's essential for advisors to recognize the inherent risks across asset classes. In this article, we’ll focus on private equity secondaries, which are transactions in which an investor buys an asset later in its investment cycle. These transactions take place in the secondary market, where investors can purchase and sell ownership holdings in private equity assets. However, one type of investments has stayed course while most others have faded: private equity secondaries. In this roundtable, I discuss the dynamics of the evolving secondary market with David Park, Managing Partner at Headlands Capital, and Michael Pilson, Managing Director of the Private Funds Group at Houlihan Lokey. As institutional investors and other market participants increasingly look for more liquidity, flexibility, and the ability to manage their portfolios, secondary market transactions in private equity have become one of the most attractive and fastest-growing strategies in the investment landscape. About $45 billion of deals were executed in Q1 2025, according to the PJT Q1 2025 Secondary Market Insight report, accessed by Secondaries Investor, an intelligence firm focusing on the private equity secondaries market. Jan 14, 2025 · Secondaries market topped $140 billion in transactions last year Growth raises concerns of a talent bottleneck at law firms Some Big Law firms have found success in an emerging corner of private equity, bolstering their bona fides in the all-important asset class while riding out a downturn in . This attracts the interest of investors, but what exactly do private equity firms do? Nov 18, 2024 · Investors have flocked to private equity secondaries over the last three years, largely driven by the allure of acquiring stakes in private equity funds at deep discounts to NAV. In 2024, semi-liquid vehicles accounted for nearly one-third of total fundraising, underscoring their growing importance in private market secondaries. However, their illiquid nature also poses some challenges. An increasing number of companies are owned by private equity firms. Apr 17, 2025 · As the market matures, secondaries are poised to play a more significant role in the private equity investment landscape in Canada and abroad. May 9, 2025 · Secondaries investors are a category of private-equity professional, but rather than finding companies to turn around, they are responsible for locating, assessing, and executing private fund Introduction to the Mechanics of the Private Equity Secondary Market Private equity funds are typically organized as limited partnerships, to which investors – also commonly referred to as Limited Partners or LPs – commit capital over the course of a fundraising process. Secondary buyers gain immediate exposure to an existing, mature portfolio which may generate cash flow sooner than primary funds. This article explores what’s driving the trend, how the major players are adapting, and what GPs raise capital from LPs and invest it into private companies, often across various sectors. Dec 18, 2024 · The secondaries market has emerged as a critical pillar of private equity, experiencing record-breaking activity in 2024 with deal volume on track to exceed $140 billion. e. Secondaries may help Oct 22, 2025 · The evolution of the private equity secondaries market from a niche to a mainstream investment strategy is testament to its resilience and adaptability. This market is growing, attracting investors who want to manage risk and gain faster returns. In recent years, the secondary market has gained prominence, enabling investors to Apr 17, 2023 · The private equity secondary market comprises the buying and selling of pre-existing investor commitments to private market funds. Explore core growth drivers, including liquidity, portfolio management, asset class expansion and more. 2 For secondary buyers, these vehicles offer lead investors the opportunity to increase their potential check size, though visibility can be limited until later in processes. Dive into the latest trends, including the rise of LP-led and GP-led transactions. Just in Q1 2024, Lexington Partners closed a US $22. S. Expanding the market for secondary funds may be the solution. Private equity secondaries remain the dominant force today, with volumes exceeding $160 billion annually and expected to reach $200 billion by the end of 2025. 2 trillion of capital over the past five years 5. The leading pricing, data and news source for the secondary markets of private equity, real estate, infrastructure & debt funds and venture-backed companies As observed in previous years, the number of market participants in GP-led transactions is increasing, with traditional private equity sponsors and family offices continuing to develop secondary capabilities. This differs from the primary PE market, where funds are raised directly from investors by PE firms. According to mid-year advisory reports from Campbell Lutyens, Evercore, Jefferies and PJT Partners, the first half of 2024 saw between $68 billion and $72 billion in volume. 8 billion between 1 January 2019 and 31 December 2023. Sep 10, 2025 · Discover how private market secondaries are evolving across asset classes like private equity, venture capital, private credit, and infrastructure. Mar 12, 2025 · What Are Secondaries? Secondaries generally consist of private markets investments, or existing funds comprising such investments, that transact in the secondary market. The private equity secondaries market hit a new high, with transaction volume of $85bn. CIP VII closed several GP-led secondary transactions, partnering with Investcorp, BPEA and Revelstoke Capital Partners. We rely on insights from Jefferies’ Private Capital Advisory (“PCA”) team who works closely with the largest and most influential limited partners, general partners and other market participants on a regular basis. Once considered a backdoor exit for underperforming assets, today's secondary market is an increasingly sophisticated space offering a range of potential benefits. For example, investors in a primary PE fund commit capital for upwards of a decade. What you should know: Private equity secondary funds are a type of investment whereby a secondary buyer purchases a commitment to a private equity fund from the primary buyer or secondary seller – effectively becoming a replacement investor. 7 billion fund – the largest fund complex ever raised to invest in secondaries. This Q&A explores the key drivers behind this surge, the evolving dynamics of LP- and GP-led deals, and predictions for the road ahead. Private equity secondary markets involve sales of ownership interests in a private fund from the fund’s current investors (i. GCM Grosvenor shares insights into the market’s resilience, the factors shaping its Jan 23, 2025 · Success in fundraising for sub-strategies (e. Learn about market growth, pricing dynamics, and investor benefits. These transactions occur in the secondary market, offering investors the opportunity to adjust their portfolios, unlock liquidity, or access high-potential assets. Sep 12, 2024 · The secondaries market is no longer confined to traditional private equity, but is expanding into additional asset classes including real estate, venture capital, infrastructure, and debt. Sep 5, 2025 · Private equity secondary funds have a history of strong performance across various market conditions, suggesting that their success typically isn’t tied to market timing. Dive into strategies, benefits, and market insights. According to the 2024 edition of the Secondaries Investor 50 ranking, compiled by Private Equity International and affiliate title Secondaries Investor, the top 50 Apr 2, 2025 · A secondary market primer What is a secondary transaction? Essentially, it is what its name implies. Jul 11, 2024 · Understand the function of the private secondary market and how companies can benefit from secondary liquidity & secondary market transactions. Transactions involving an investor purchasing a current interest or asset from primary private equity fund investors, also called limited partners (LPs), are called private equity secondaries. In the first half of 2024, the secondary market volume reached a remarkable USD 68 billion, and the growth trajectory is expected to continue for the foreseeable future. This was a 45% year-on-year (YoY) growth from what was obtained in Q1 Oct 17, 2024 · From traditional private equity funds to private debt, infrastructure and real estate, the secondary market today covers a wide range of assets. With the first half traditionally being the quieter portion of the year for secondaries activity, the reports all Mar 4, 2025 · Key Takeaways Adding private market equity assets to your retirement portfolio can offer the potential for higher returns and diversification. There’s also been a shift in perception around the role of secondaries. Read our March 2025 insights into the U. As an experienced global investor in private market secondaries, we acquire interests in existing private funds and companies to deliver alpha and immediate diversification for our clients. Industry Ventures, a 25-year veteran in the VC secondaries market, produced a report in 2024 that estimated the size of the venture secondaries market would reach $122 billion in 2025, though due to the typically private nature Sep 5, 2024 · The Secondary Market is breaking records in 2024 with increasing transaction volumes and growing investor interest in private equity secondaries. Jul 8, 2025 · In many ways, private credit secondaries are situated where the much larger private equity secondaries market was approximately five or so years ago. ntb ujpcun uilds vfrccc xvydnh vvigo nxt lewbz ihw zoywwrl jzd sesxqe mungw pctucq opikxee