What’s next for credit secondaries?
Credit secondaries continues its accelerated growth in 2025 – $18-20bn+ in deal volume1– and that expansion will likely continue in 2026. Historically, LPs avoided selling credit positions due to steep discounts driven by mismatched cost of capital. Today, dedicated credit secondary funds have reshaped market dynamics. First-lien loan portfolios now trade in the 90s (i.e. approximately 90% of full value) with some clearing at par, making liquidity decisions far less punitive2.
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Paul Lanna: What’s your expectation for the credit secondaries market in...
The growth drivers mirror those in equity secondaries: portfolio rebalancing, event-driven sales (particularly in insurance), and the growing trend of credit GP-leds. The market will remain undercapitalised relative to opportunity, signalling significant runway for expansion.
Credit secondaries were historically dominated by LP-led deals, but GP-led transactions have recently gained traction. As adoption accelerates, the market is poised for new highs, potentially reaching $40bn in deal volume by 20273.
I think with the increased adoption of GP-led in private credit, we will see a record year in 2026.
1. Evercore. (2025, August). The Credit Secondaries Market: Structure, Momentum, and Why Growth Should Persist.
2. Nigel Dawn of Evercore. (2025, November). “Market Outlook Panel”, Coller Capital’s New York LP Meeting.
3. Jefferies. (2025, July). A dramatic shift in the credit secondaries market.