The secondary private markets experienced unprecedented expansion in 2025, achieving a historic milestone with total transaction volumes hitting $225 billion, a 45% surge from the previous year. This breakthrough, which eclipsed the $200 billion mark for the first time, underscores the market’s maturation as a vital liquidity tool for investors navigating persistent economic uncertainties.
According to insights from Campbell Lutyens‘ comprehensive 2025 Secondary Market Overview, drawn from data across more than 100 key participants, this growth was propelled by heightened activity in both limited partner (LP)-led and general partner (GP)-led deals, alongside diversification into non-traditional sectors.
LP-led transactions emerged as the dominant force, comprising about 54% of the overall volume at roughly $121.5 billion—a 54% year-over-year increase.
This uptick reflects a shift in seller behavior, with institutions like pensions, sovereign wealth funds, and endowments increasingly utilizing secondaries for proactive portfolio rebalancing rather than distress sales.
Pricing in this segment showed slight softening, with average discounts widening to 13.9% from 13.3% in 2024, influenced by a diverse mix of fund qualities.
High-caliber buyout, infrastructure, and direct lending portfolios, however, maintained robust valuations, often trading at single-digit discounts.
Geographically, while North America retained leadership at around 63% of LP-led activity, participation from EMEA and Asia-Pacific regions grew notably, driven by regulatory adjustments and strategic liquidity needs in markets like Taiwan.
GP-led deals also flourished, reaching $93 billion—a 42% rise—fueled by sponsors extending hold periods on premium assets amid a subdued M&A and IPO landscape.
Continuation vehicles (CVs) were pivotal, with multi-asset structures gaining traction for their ability to deliver distributions to LPs while securing fresh capital.
Pricing here remained resilient, with over half of transactions occurring at or above net asset value (NAV), averaging a modest 3.7% discount.
Sectors such as technology software and industrials led the charge, boasting elevated EBITDA multiples around 14.7x, highlighting investor appetite for cash-flow-positive opportunities.
Beyond private equity, which accounted for over 70% of volumes, infrastructure and private credit secondaries posted remarkable gains.
Infrastructure volumes are estimated to have broken prior records, with GP-led activity alone projected to exceed $16 billion, supported by demand for growth capital in high-performing assets like renewable energy projects.
Discounts tightened to mid-single digits, reflecting competitive bidding. Similarly, private credit secondaries surged to over $14 billion, with GP-led deals overtaking LP-led for the first time at 60% share, as managers sought solutions for maturing loan portfolios amid rising interest rates.
Market sentiment remained optimistic despite mid-year volatility from macroeconomic factors.
Evergreen vehicles raised over $30 billion in the past 18 months, with significant allocations to secondaries, intensifying competition and enabling premiums for top-tier assets.
Challenges persist, including potential oversupply and pricing pressures in lower-quality segments, but opportunities abound in diversification and innovative structures like preferred equity hybrids.
Looking to 2026, experts anticipate sustained momentum, with volumes potentially approaching $250 billion, bolstered by $200 billion-plus in dry powder and evolving buyer strategies.
As the secondary market evolves from a niche to a core component of private capital ecosystems, it aims to offer enhanced liquidity and risk management for a broader array of stakeholders.
