Secondaries market hits record $118bn in volume in pursuit of liquidity

The global secondaries market achieved a historic milestone in the first half of 2026, recording $118 billion in transaction volume—a 15% increase year-over-year. This growth trajectory reflects sustained institutional demand for secondary investments as alternative liquidity sources, particularly as traditional private equity exit channels remain constrained.

The surge in secondaries activity is driven by two interconnected market dynamics: robust buyer appetite and limited liquidity alternatives from conventional private equity exits. Institutional investors, including family offices, pension funds, and other alternative investors, continue to view secondaries as an effective mechanism to unlock capital from mature fund positions without sacrificing exposure to private assets. This demand dynamic has elevated the secondaries market from a niche strategy to a core component of the alternative investment landscape.

The record $118 billion half-year total demonstrates the scale at which secondary transactions now operate and signals that the market has become sufficiently deep and liquid to absorb significant capital flows. For investors managing illiquid alternative portfolios, secondaries transactions offer strategic flexibility—enabling portfolio rebalancing, accessing distributions earlier than expected maturity dates, or gaining exposure to high-quality assets at potentially discounted valuations relative to primary fund commitments.