Key Takeaways
- • Adams Street Partners closed its eighth Global Secondaries Fund at $2.7bn, exceeding its $2bn fundraising target, with an additional $2.3bn raised through separately managed accounts, bringing total capital to over $5bn for the strategy.
- • The firm has already deployed approximately one-third of the newly raised capital, with roughly half of investments allocated to single-asset and multi-asset continuation vehicles, reflecting the growing demand for alternative liquidity solutions in the secondary market.
- • Market dynamics have shifted favorably for buyers, according to Jeff Akers, partner and head of secondary investments at Adams Street, with subdued private equity exits and motivated sellers creating an attractive investment environment, particularly in the lower mid-market where pricing inefficiencies persist.
- • Adams Street is targeting healthcare, software, and consumer sectors, leveraging its $73bn in assets under management and broad private markets platform to source transactions in a competitive secondaries market.
- • The latest raise follows the firm's previous secondaries fundraising of $3.2bn in 2023, demonstrating sustained institutional investor appetite for the secondary asset class despite market volatility.
Summary
Adams Street Partners, the Chicago-based private markets manager, has successfully closed fundraising for its latest private equity secondaries strategy at more than $5bn in total capital commitments. The firm closed its eighth Global Secondaries Fund at $2.7bn, exceeding its initial $2bn target, while simultaneously securing $2.3bn through related separately managed accounts. This fundraising success underscores continued institutional investor appetite for secondary investments despite broader market uncertainties.
The raise represents a significant increase from Adams Street's previous secondaries fundraising effort in 2023, which closed at $3.2bn, indicating accelerating demand for the asset class. The firm's $73bn in assets under management positions it as a substantial player in the secondary market, with the broad private markets platform serving as a competitive advantage in transaction sourcing and deal execution.
Current market dynamics are creating favorable conditions for secondary investors. Subdued private equity exit activity has motivated limited partners to sell fund interests, while general partners increasingly utilize continuation vehicles to extend ownership of portfolio companies and provide alternative liquidity solutions. Jeff Akers, partner and head of secondary investments at Adams Street, noted that these dynamics have shifted the balance of power toward buyers, creating an attractive investment environment with reduced competition and persistent pricing inefficiencies, particularly in the lower mid-market segment.
Adams Street's deployment strategy reflects the structural shifts in the secondary market. Approximately half of the firm's investments are made through single-asset and multi-asset continuation funds—a rapidly expanding area as sponsors seek alternative liquidity avenues. The firm has already deployed roughly one-third of the newly raised capital and is targeting exposure to healthcare, software, and consumer sectors, areas where it sees sustainable value creation opportunities aligned with current market dynamics.
The raise represents a significant increase from Adams Street's previous secondaries fundraising effort in 2023, which closed at $3.2bn, indicating accelerating demand for the asset class. The firm's $73bn in assets under management positions it as a substantial player in the secondary market, with the broad private markets platform serving as a competitive advantage in transaction sourcing and deal execution.
Current market dynamics are creating favorable conditions for secondary investors. Subdued private equity exit activity has motivated limited partners to sell fund interests, while general partners increasingly utilize continuation vehicles to extend ownership of portfolio companies and provide alternative liquidity solutions. Jeff Akers, partner and head of secondary investments at Adams Street, noted that these dynamics have shifted the balance of power toward buyers, creating an attractive investment environment with reduced competition and persistent pricing inefficiencies, particularly in the lower mid-market segment.
Adams Street's deployment strategy reflects the structural shifts in the secondary market. Approximately half of the firm's investments are made through single-asset and multi-asset continuation funds—a rapidly expanding area as sponsors seek alternative liquidity avenues. The firm has already deployed roughly one-third of the newly raised capital and is targeting exposure to healthcare, software, and consumer sectors, areas where it sees sustainable value creation opportunities aligned with current market dynamics.
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