The private securities market has experienced significant growth in recent years. Meanwhile, public markets have stuttered, harmed by excessive regulation and the ongoing cost to comply with, at times, obtuse rules.
A notable example of regulatory overreach occurred during the Biden Administration, when the Securities and Exchange Commission pursued environmental impact rules. This opaque type of disclosure would have cost industry and investors billions while creating a new legion of “consultants” as they sought to enumerate the so-called impact of a public firm. You get the government you elect, I guess. Fortunately, with the new administration, this cockamamie policy was put to rest.
Due to misguided policymakers, markets have acted as anticipated, and firms have sought to remain private for as long as possible. This means that private securities have grown dramatically in both primary and secondary offerings. New secondary market platforms have emerged to cater to this boon in private securities as early shareholders seek liquidity before an IPO (if it ever happens).
Unsurprisingly, Evercore reports that secondary transactions of private securities hit a new record in the first six months of 2025, topping $102 billion. Evercore predicts that secondaries are on track for a record year.
“The secondary market reached a new milestone in H1’25, with transaction volume surpassing $100 billion, the highest on record for any half-year period and exceeding most full-year totals over the past decade. 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.”
Simon Tang, Head of US at Accelex, an alternative investment software provider, agrees with Evercore that the secondaries market shows no signs of slowing, with the first six months of 2025 surpassing most full-year numbers for the past decade.
“So far this year, public market volatility has spread to private markets, with some investors rushing to exit positions across their portfolios to de-risk and free up vital liquidity. Secondaries and the capital raised over the past couple of years have provided a lifeline, granting investors the ability to exit early in a market where assets are normally tied up for years, enabling sophisticated investors to buy the dip,” says Tang.
He adds that while this surge in activity is promising, there is a need for more data, and demand for private securities increases. His firm’s clients are apparently seeking more data to evaluate secondaries before making a purchase.
Recently, SEC Chairman Paul Atkins acknowledged the growth of private securities, stating that his goal is to ensure both private and public markets improve.