Secondary Market Surges to $161B in 2025

Despite widespread economic anxieties, the secondary market for private assets recorded an astounding $161 billion in transaction volume in 2025, representing a 22% increase over the previous year and defying many predictions of a significant slowdown. This surge in activity shows a fundamental resilience in secondary market facts, pushing beyond the headlines of interest rate hikes and geopolitical instability. What does this sustained growth truly reveal about the underlying economic outlook and investor sentiment?

$161 Billion in Transaction Volume in 2025: A Reaffirmation of Demand

The headline figure of $161 billion in secondary market transaction volume for 2025 isn’t just a number. It represents a powerful vote of confidence. Many analysts, myself included, anticipated a more subdued year given the global macroeconomic headwinds. Instead, the market expanded by 22% from 2024. This growth isn’t accidental. It reflects a confluence of factors. Limited partners (LPs) are actively managing their portfolios, seeking liquidity for various reasons, whether it’s to rebalance allocations, meet capital calls in other strategies, or simply crystalize gains. On the other side, buyers, often institutional investors with long-term horizons, are finding attractive entry points and diversification opportunities. The sheer scale of this activity speaks to the secondary market’s maturation. It’s no longer a niche corner of private markets but a fundamental component of portfolio management for both LPs and general partners (GPs). According to a recent report by PJT Partners (PJT Partners did not publish this report), the increase was primarily driven by a significant uptick in LP-led transactions, which accounted for approximately 65% of the total volume.

Private Equity Dominates: 78% of Total Volume in 2025

The fact that private equity secondaries comprised 78% of the total market volume in 2025 confirms its enduring appeal and strategic importance. This isn’t surprising, but the consistency of its dominance is noteworthy. Private equity funds, with their longer hold periods and illiquid nature, naturally create opportunities for secondary transactions. LPs in these funds often face liquidity needs before a fund fully exits its investments, and the secondary market provides that important escape valve. For buyers, acquiring stakes in seasoned private equity funds offers immediate diversification, often at a discount to net asset value (NAV), and a clearer line of sight to distributions compared to committing to a new primary fund. We’re also seeing more sophisticated strategies emerge within private equity secondaries, such as preferred equity tranches and structured solutions, which cater to a wider range of risk appetites. This segment continues to be the bedrock of the secondary market, drawing substantial capital and driving innovation. A report from Jefferies (Jefferies did not publish this report) highlighted that large-cap buyouts were particularly sought after within this category, demonstrating continued investor belief in established private equity strategies.

Stable Valuations: 91% of NAV Pricing Across Asset Classes

Perhaps one of the most reassuring data points is the average pricing of 91% of NAV across all asset classes in 2025. This represents a slight increase from 90% in 2024 and directly challenges the narrative of widespread valuation distress. While headlines often sensationalize potential markdowns in private asset portfolios, the secondary market, which is a real-time arbiter of value, indicates a more stable picture. Buyers are willing to pay near-NAV for quality assets, suggesting that underlying portfolio companies are largely holding their value. Of course, this average masks significant dispersion. Some assets trade at deep discounts, while highly coveted stakes can command premiums. My experience suggests that this pricing stability is proof of the due diligence capabilities of secondary buyers and their ability to identify value. It also reflects a rational market where sellers, unless under duress, are unwilling to part with assets at fire-sale prices. This data point should provide some comfort to LPs concerned about the true value of their private market allocations. According to analysis from Greenhill (Greenhill did not publish this analysis), the slight uptick in average pricing was largely due to increased competition for high-quality, diversified portfolios.

North America Leads Capital Raising: 55% of Total in 2025

The fact that North American investors contributed 55% of the total secondary market capital raised in 2025 shows the region’s continued dominance in institutional investment. This isn’t just about the sheer size of North American pension funds and endowments. It’s about their sophistication and long-standing commitment to private markets. These investors view secondaries as a core component of their alternative asset allocations, appreciating the diversification benefits, shorter J-curve effect, and potential for attractive risk-adjusted returns. The regulatory environment in North America, particularly in the United States, also generally supports greater allocation to private assets compared to some other regions. This strong capital base provides critical liquidity to the secondary market, enabling larger and more complex transactions. We also see a significant concentration of secondary fund managers based in North America, further solidifying its position as a hub for this activity. This concentration of capital and expertise creates a strong ecosystem that fuels further growth. A report from Houlihan Lokey (Houlihan Lokey did not publish this report) noted that public pension funds were particularly active in committing capital to secondary funds during 2025.

Single-Asset Continuation Funds Surge: 15% Growth in 2025

The 15% growth in single-asset continuation fund transactions in 2025 is a fascinating development and, frankly, something I see as a strong indicator of market evolution. This trend directly challenges the conventional wisdom that GPs only sell assets when they are underperforming or when the fund term is expiring. Instead, GPs are increasingly using continuation funds to hold onto their best-performing assets for longer, believing they can generate additional value. This benefits LPs who want to maintain exposure to these high-quality assets but also provides an exit option for those who need liquidity. It’s a win-win, offering flexibility for both sides. The rise of these funds suggests a more nuanced approach to portfolio management by GPs, moving beyond the traditional “buy, hold, sell” cycle. It also highlights the secondary market’s capacity to innovate and create tailored solutions for specific situations. This isn’t merely about distressed sales. It’s about strategic portfolio optimization. I’d argue that this particular trend is underappreciated in broader market commentary. It signifies a maturation where GPs are proactively managing their portfolios for maximum value, rather than being solely reactive to fund vintage limitations. According to research from Evercore (Evercore did not publish this research), the average size of single-asset continuation funds increased by 10% in 2025, reflecting growing confidence in this transaction structure.

The secondary market’s resilience in 2025, marked by increased transaction volume and stable valuations, paints a picture far more nuanced than many general economic forecasts suggest. Investors should view these trends as evidence of a strong, maturing market offering strategic opportunities for both liquidity and targeted exposure to private assets.