Key Takeaways
- • The private capital secondary market is projected to reach $250 billion in total transaction volume in 2026, representing continued record-breaking growth in the sector.
- • The 2025 global secondary market achieved $240 billion in transaction volume, a 48 percent year-over-year increase that exceeded market expectations and demonstrated sustained momentum into 2026.
- • Both GP-led and LP-led secondary transactions drove the market's expansion, with capital formation for secondaries funds remaining robust—Q1 2026 saw $29.7 billion raised globally with over $112.5 billion targeted across funds in market.
- • Historical growth trajectory shows dramatic acceleration: secondary market volume increased 58 percent from $43 billion in H1 2023 to $68 billion in H1 2024, establishing the foundation for record 2025 and 2026 performance.
- • Continuation fund pricing and terms remain a focal point for market participants, with European GP-led market activity contributing significantly to global secondary market dynamics.
Summary
The private capital secondary market is on pace for a landmark $250 billion year in 2026, building on exceptional 2025 performance that delivered $240 billion in transaction volume—a 48 percent year-over-year increase. According to William Blair's 2026 Secondary Market Report, market insiders project full-year 2026 volume will reach the $250 billion threshold as both GP-led and LP-led transactions continue driving growth across the sector.
The secondary market's sustained expansion reflects structural shifts in private capital allocation and portfolio management. Historical data underscores this trajectory: the sector grew from $43 billion in H1 2023 to $68 billion in H1 2024, a 58 percent increase that signaled accelerating investor appetite for secondary positions. For the full year 2024, market participants estimated approximately $160 billion in annual secondary market volume, setting the stage for the dramatic acceleration observed in 2025 and projected for 2026.
Capital formation for secondaries vehicles remains robust. In Q1 2026 alone, private equity secondaries funds raised $29.7 billion globally, with over $112.5 billion targeted across funds currently in market. This capital deployment pipeline underscores strong institutional investor demand for secondary positions in mature private fund portfolios and direct company interests. William Blair's research highlights that capital formation and transaction volume growth are being driven by record-high activity across both GP-led continuation funds and LP-led secondary sales.
Key market dynamics include evolving continuation fund pricing and terms, heightened European GP-led secondary market activity, and the long-term structural growth outlook for the secondaries sector. Major institutional investors, including firms like BlackRock's Secondaries platform, continue acquiring existing interests in private funds and companies on behalf of institutional clients, reinforcing the sector's role as a critical component of private capital infrastructure. Market participants attribute sustained growth to elevated volume in primary private markets combined with institutional investor demand for liquidity and portfolio optimization solutions.
The secondary market's sustained expansion reflects structural shifts in private capital allocation and portfolio management. Historical data underscores this trajectory: the sector grew from $43 billion in H1 2023 to $68 billion in H1 2024, a 58 percent increase that signaled accelerating investor appetite for secondary positions. For the full year 2024, market participants estimated approximately $160 billion in annual secondary market volume, setting the stage for the dramatic acceleration observed in 2025 and projected for 2026.
Capital formation for secondaries vehicles remains robust. In Q1 2026 alone, private equity secondaries funds raised $29.7 billion globally, with over $112.5 billion targeted across funds currently in market. This capital deployment pipeline underscores strong institutional investor demand for secondary positions in mature private fund portfolios and direct company interests. William Blair's research highlights that capital formation and transaction volume growth are being driven by record-high activity across both GP-led continuation funds and LP-led secondary sales.
Key market dynamics include evolving continuation fund pricing and terms, heightened European GP-led secondary market activity, and the long-term structural growth outlook for the secondaries sector. Major institutional investors, including firms like BlackRock's Secondaries platform, continue acquiring existing interests in private funds and companies on behalf of institutional clients, reinforcing the sector's role as a critical component of private capital infrastructure. Market participants attribute sustained growth to elevated volume in primary private markets combined with institutional investor demand for liquidity and portfolio optimization solutions.
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