Key Takeaways
- • Global private secondaries market experienced year-on-year volume decline in Q1 2026, though PJT Partners characterizes the market as fundamentally "resilient" despite the contraction.
- • The slowdown marks a notable shift from the market's previously "booming" trajectory, signaling potential headwinds in LP liquidity demand or GP-led continuation fund activity.
- • PJT Partners' advisory report suggests underlying market mechanics remain sound despite near-term volume pressures, indicating structural demand for secondary transactions persists among institutional investors.
Summary
The global private secondaries market contracted on a year-over-year basis during the first quarter of 2026, according to a new report from PJT Partners, the advisory-focused investment bank. While deal volume declined compared to the same period in 2025, the firm's analysis indicates that market fundamentals remain intact and the sector continues to demonstrate resilience despite the near-term slowdown.
PJT Partners' characterization of the market as "resilient" despite volume headwinds suggests that the contraction may reflect cyclical timing rather than structural deterioration in secondary transaction demand. The secondaries market, which facilitates the transfer of limited partnership interests and fund assets between institutional investors, has experienced substantial growth over the past several years as GPs increasingly deploy continuation funds and continuation vehicles to extend asset lifecycles, and as LPs seek liquidity solutions for mature fund positions.
The year-on-year decline in Q1 2026 contrasts with the market's previously expansionary phase, raising questions about whether the slowdown is temporary or signals a broader normalization. Potential contributing factors could include shifts in LP capital availability, changes in sponsor-led continuation fund activity, or seasonal volatility in transaction timing. However, PJT Partners' assertion that market resilience persists suggests that underlying institutional demand for secondary transactions has not deteriorated materially, even as near-term volumes have moderated.
For hedge fund managers, institutional investors, and family offices active in the secondaries space, the PJT Partners report underscores the importance of monitoring deal flow dynamics while recognizing that temporary volume fluctuations may not signal deterioration in long-term market structure or opportunity sets.
PJT Partners' characterization of the market as "resilient" despite volume headwinds suggests that the contraction may reflect cyclical timing rather than structural deterioration in secondary transaction demand. The secondaries market, which facilitates the transfer of limited partnership interests and fund assets between institutional investors, has experienced substantial growth over the past several years as GPs increasingly deploy continuation funds and continuation vehicles to extend asset lifecycles, and as LPs seek liquidity solutions for mature fund positions.
The year-on-year decline in Q1 2026 contrasts with the market's previously expansionary phase, raising questions about whether the slowdown is temporary or signals a broader normalization. Potential contributing factors could include shifts in LP capital availability, changes in sponsor-led continuation fund activity, or seasonal volatility in transaction timing. However, PJT Partners' assertion that market resilience persists suggests that underlying institutional demand for secondary transactions has not deteriorated materially, even as near-term volumes have moderated.
For hedge fund managers, institutional investors, and family offices active in the secondaries space, the PJT Partners report underscores the importance of monitoring deal flow dynamics while recognizing that temporary volume fluctuations may not signal deterioration in long-term market structure or opportunity sets.
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