Key Takeaways
- • Private equity secondaries fundraising collected $38.77 billion across 12 funds through mid-June 2025, putting annual fundraising on track to exceed the full-year 2024 total of $60.78 billion, demonstrating continued acceleration in the sector.
- • A record 215 private equity secondaries funds are actively seeking capital—the highest count in at least a decade—while secondary market deal volume reached $155 billion in 2024, representing 15% growth over the previous record of $135 billion set in 2021.
- • Supply-demand imbalance is widening: secondary market liquidity is growing but not fast enough to meet the accelerating need for LP liquidity, with primary fund investment activity remaining 45% below 2021 peak levels, according to Campbell Lutyens.
- • Extended exit slowdown and diminished distributions are driving near-term liquidity pressures across private equity portfolios, with multiple multibillion-dollar LP stakes hitting the secondaries market since early 2025 to address capital needs.
- • Long-term growth drivers include expansion of the alternative asset universe and mainstreaming of secondary sales as a standard portfolio management tool, creating structural tailwinds for the secondaries market despite near-term supply constraints.
Summary
Private equity secondaries fundraising is accelerating but failing to keep pace with surging demand for liquidity, creating a structural imbalance in the market. Through mid-June 2025, 12 secondaries funds had gathered $38.77 billion in capital commitments, according to S&P Global Market Intelligence analysis of Preqin Pro data, putting the sector on track to exceed the full-year 2024 fundraising total of $60.78 billion. This represents continued momentum in a subsector that has benefited from both cyclical and structural tailwinds.
The scale of fundraising activity underscores the sector's appeal to capital allocators. A record 215 private equity secondaries funds are currently in market seeking capital—the highest count in at least a decade. Simultaneously, secondary market deal volume has surged to record levels: $155 billion in completed transactions during 2024, a 15% increase above the prior record of $135 billion achieved in 2021. By contrast, primary fund investment activity remains depressed, with 2024 investment volumes standing 45% below the 2021 peak, creating pronounced structural imbalances within the broader private equity ecosystem.
The mismatch between supply and demand represents the core market challenge. Ben Perl, global co-head of secondary private equity at Neuberger Berman, characterized the dynamic succinctly: "The actual dollars in the secondary market available to supply liquidity are growing, but it's not growing as fast as the need for liquidity." This supply constraint is being driven by near-term pressures on limited partners and fund managers. An extended slowdown in exits has dampened distribution flows back to investors, forcing LPs to pursue secondary sales to meet near-term capital needs. Multiple multibillion-dollar LP private equity stakes have entered the secondaries market since the start of 2025, underscoring the urgency of these liquidity requirements.
Longer-term structural factors are expected to sustain secondaries market growth. The expansion of the alternative asset universe, combined with the mainstreaming of secondary sales as a legitimate portfolio management tool rather than a distressed-selling mechanism, creates durable tailwinds. However, the current environment reveals that cyclical demand for liquidity is outpacing the supply of secondary vehicles willing to deploy capital, creating a capacity constraint that may persist through the current exit bottleneck.
The scale of fundraising activity underscores the sector's appeal to capital allocators. A record 215 private equity secondaries funds are currently in market seeking capital—the highest count in at least a decade. Simultaneously, secondary market deal volume has surged to record levels: $155 billion in completed transactions during 2024, a 15% increase above the prior record of $135 billion achieved in 2021. By contrast, primary fund investment activity remains depressed, with 2024 investment volumes standing 45% below the 2021 peak, creating pronounced structural imbalances within the broader private equity ecosystem.
The mismatch between supply and demand represents the core market challenge. Ben Perl, global co-head of secondary private equity at Neuberger Berman, characterized the dynamic succinctly: "The actual dollars in the secondary market available to supply liquidity are growing, but it's not growing as fast as the need for liquidity." This supply constraint is being driven by near-term pressures on limited partners and fund managers. An extended slowdown in exits has dampened distribution flows back to investors, forcing LPs to pursue secondary sales to meet near-term capital needs. Multiple multibillion-dollar LP private equity stakes have entered the secondaries market since the start of 2025, underscoring the urgency of these liquidity requirements.
Longer-term structural factors are expected to sustain secondaries market growth. The expansion of the alternative asset universe, combined with the mainstreaming of secondary sales as a legitimate portfolio management tool rather than a distressed-selling mechanism, creates durable tailwinds. However, the current environment reveals that cyclical demand for liquidity is outpacing the supply of secondary vehicles willing to deploy capital, creating a capacity constraint that may persist through the current exit bottleneck.
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