Secondaries: Capitalising on the wave

One in two are repeat sellers in LP-led deals

Liquidity constraints remained the primary catalyst for secondaries deal activity, driving a surge in LP-led transactions in 2025 resulting in $110-120bn of deals, accounting for 54% of total secondaries volume¹.

LPs continue to face DPI (Distributions to Paid-In Capital) shortfalls, prompting them to take control of their liquidity rather than waiting for GPs to exit assets. Sellers in the market consisted of endowments, foundations, family offices, and asset managers (each represent roughly 20% of the market), while public pensions accounted for a smaller share².

One in two sellers in the LP-led market are now repeat sellers³, underscoring a strategic shift. LPs increasingly view secondaries as a portfolio management tool, allowing them to rotate capital toward newer vintages and optimise liquidity. Pricing has supported this trend: high-quality portfolios currently trade in the 90-cent-on-the-dollar range³, allowing more deals to get done.

Pricing dynamics remain favourable for sellers of quality assets. High-performing buyout positions often transact at 90–95 cents on the dollar⁴, while venture portfolios have shown modest improvement, particularly for top-tier managers³. Real estate, however, continues to lag, reflecting sector-specific headwinds³.

Private wealth vehicles have introduced incremental pricing pressure, but the effect is relatively modest. Wealth capital still represents less than 10% of secondary market funding³. Contrary to popular narratives, these vehicles are not irrational bidders; they typically co-invest alongside flagship funds and target growth-oriented vintages rather than distressed tail-end positions. Secondaries can be a uniquely suitable strategy for individual investors so there remains a large opportunity set for the strategy in the wealth channel.