Key Takeaways
- • The secondaries market reached a record $226 billion in transaction volume during 2025, representing 41% year-over-year growth and significantly exceeding Evercore's pre-year forecast of $171 billion.
- • Limited partner-led secondaries rose 34% to $120 billion, while general partner-led secondaries (continuation vehicles and evergreen structures) surged 51% to $106 billion, indicating broad-based market participation across investor segments.
- • LP appetite for secondaries shifted from distressed selling to strategic portfolio optimization, supported by improved pricing dynamics—buyout stakes sold at 94% of net asset value in H1 2025 versus less than 90% in 2022.
- • The secondaries market has grown 8.7-fold since 2013 ($26 billion), with particular acceleration during and after the COVID-19 pandemic, reflecting structural changes in private fund exit timelines and LP liquidity management strategies.
- • Strong H1 2025 performance ($100+ billion in deal volume) and Q3 activity ($60 billion) demonstrated sustained momentum, driven by slower capital distributions from PE firms and lengthening fund lifecycles.
Summary
The secondaries market for private fund stakes achieved unprecedented scale in 2025, reaching $226 billion in total transaction volume according to Evercore Inc.'s Private Capital Advisory group. The 41% increase from 2024 substantially outpaced the firm's original full-year projection of $171 billion, signaling stronger institutional demand for secondary transactions than anticipated.
The market bifurcated into two distinct growth drivers. LP-led secondaries—where institutional investors sell their positions in existing funds, often at negotiated discounts—expanded 34% to $120 billion. Concurrently, GP-led secondaries rose more sharply at 51% to reach $106 billion, reflecting increased deployment of continuation vehicles and evergreen fund structures as general partners extended portfolio company holding periods. This dual expansion indicates that both selling and extending strategies remain viable within the current private capital environment.
The evolution toward strategic optimization rather than distressed exit became evident in pricing dynamics. Secondary stakes in buyout funds traded at 94% of net asset value during the first half of 2025, compared with discounts exceeding 10% as recently as 2022, according to CAIS data. This compression of discount spreads demonstrates that LPs have shifted from panic-driven liquidations to measured portfolio rebalancing, supported by healthier valuations and improving exit prospects.
The market's trajectory reflects structural shifts in private capital distribution patterns. Private equity firms have extended holding periods, lengthening fund lifecycles and creating natural demand for secondary liquidity solutions. Since 2013, when the secondaries market stood at only $26 billion, volume has grown nearly ninefold, with particular acceleration following the 2020 COVID-era disruptions ($60 billion in 2020, $134 billion in 2021). The 2025 record demonstrates that secondaries have matured into a core portfolio management tool rather than a cyclical market driven by crisis conditions.
The market bifurcated into two distinct growth drivers. LP-led secondaries—where institutional investors sell their positions in existing funds, often at negotiated discounts—expanded 34% to $120 billion. Concurrently, GP-led secondaries rose more sharply at 51% to reach $106 billion, reflecting increased deployment of continuation vehicles and evergreen fund structures as general partners extended portfolio company holding periods. This dual expansion indicates that both selling and extending strategies remain viable within the current private capital environment.
The evolution toward strategic optimization rather than distressed exit became evident in pricing dynamics. Secondary stakes in buyout funds traded at 94% of net asset value during the first half of 2025, compared with discounts exceeding 10% as recently as 2022, according to CAIS data. This compression of discount spreads demonstrates that LPs have shifted from panic-driven liquidations to measured portfolio rebalancing, supported by healthier valuations and improving exit prospects.
The market's trajectory reflects structural shifts in private capital distribution patterns. Private equity firms have extended holding periods, lengthening fund lifecycles and creating natural demand for secondary liquidity solutions. Since 2013, when the secondaries market stood at only $26 billion, volume has grown nearly ninefold, with particular acceleration following the 2020 COVID-era disruptions ($60 billion in 2020, $134 billion in 2021). The 2025 record demonstrates that secondaries have matured into a core portfolio management tool rather than a cyclical market driven by crisis conditions.
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