Key Takeaways
- • Record 2024 volumes with sustained momentum: The secondary market closed 2024 at $156 billion in transaction volume—a 35% year-over-year increase and the highest on record, surpassing the previous peak in 2021. UBS Private Funds Group projects $180 billion in transaction volume for 2025, with an even split between LP-led and GP-led activity.
- • GP-led solutions drive structural shift: GP-led transactions reached $70 billion in 2024, representing nearly 10% of total exit value for sponsor-backed companies globally. Continuation funds (single and multi-asset structures) accounted for over 85% of GP-led volume, establishing these vehicles as the dominant liquidity mechanism for general partners.
- • LP-led volume accelerates with improved pricing dynamics: LP-led transaction volume reached $86 billion as bid-ask spreads tightened significantly, supported by record levels of secondary dry powder and persistent scarcity in distribution activity. Buyout funds comprised over 80% of LP-led volume, with single-digit NAV discounts becoming increasingly common—a marked improvement in pricing conditions.
- • Pricing convergence signals market maturation: GP-led transaction pricing improved substantially across the board, with the vast majority of deals pricing at 90% or higher of net asset value, indicating strong seller conditions and reduced valuation haircuts.
- • Liquidity constraints and dry powder imbalance driving growth: The secondary market's expansion is fundamentally driven by LP and GP demand for liquidity amid a shortage of traditional distributions, combined with record levels of capital waiting to be deployed in secondary opportunities.
Summary
The secondary market for private assets experienced a transformative 2024, establishing itself as a critical liquidity mechanism for both general partners and limited partners navigating a market characterized by distribution scarcity. According to UBS's analysis of secondary market transaction data and investor surveys, the market achieved $156 billion in closed transaction volume during 2024—a 35% increase year-over-year and the highest annual total on record, surpassing the previous peak achieved in 2021.
The acceleration reflects a fundamental shift in how private market participants manage portfolio liquidity. UBS Private Funds Group forecasts that 2025 will sustain this momentum, projecting approximately $180 billion in transaction volume with an even split between LP-led and GP-led transactions. This anticipated equilibrium between buyer-initiated and seller-initiated secondary activity signals maturation in the market structure and increasing institutional comfort with both segments as viable liquidity pathways.
GP-led secondary solutions emerged as the primary growth driver, with $70 billion in transaction volume representing nearly 10% of total exit value for sponsor-backed companies globally. This expansion reflects widespread institutional adoption of continuation funds as an attractive alternative to traditional exit mechanisms. Single and multi-asset continuation fund structures collectively accounted for over 85% of GP-led volume, establishing these vehicles as the dominant framework through which sponsors are extending hold periods and capturing incremental value creation.
Concurrently, LP-led transaction volume reached $86 billion, driven by record levels of secondary dry powder, tightening bid-ask spreads reflecting robust investor appetite, and a continued scarcity in distribution activity from underlying funds. Buyout funds dominated the LP-led segment, comprising over 80% of transaction volume, with single-digit NAV discounts becoming increasingly common—a significant improvement in pricing conditions relative to historical market dynamics. Pricing for GP-led transactions has similarly improved across the board, with the vast majority of deals now pricing at 90% or higher of net asset value, indicating favorable conditions for sponsors executing secondary transactions.
The sustained growth trajectory underscores a market response to structural supply-demand dynamics: LPs and GPs require liquidity in an environment where traditional distributions remain constrained, while secondary investors maintain elevated dry powder levels seeking deployment opportunities. This imbalance has created a favorable environment for secondary transaction execution and pricing normalization.
The acceleration reflects a fundamental shift in how private market participants manage portfolio liquidity. UBS Private Funds Group forecasts that 2025 will sustain this momentum, projecting approximately $180 billion in transaction volume with an even split between LP-led and GP-led transactions. This anticipated equilibrium between buyer-initiated and seller-initiated secondary activity signals maturation in the market structure and increasing institutional comfort with both segments as viable liquidity pathways.
GP-led secondary solutions emerged as the primary growth driver, with $70 billion in transaction volume representing nearly 10% of total exit value for sponsor-backed companies globally. This expansion reflects widespread institutional adoption of continuation funds as an attractive alternative to traditional exit mechanisms. Single and multi-asset continuation fund structures collectively accounted for over 85% of GP-led volume, establishing these vehicles as the dominant framework through which sponsors are extending hold periods and capturing incremental value creation.
Concurrently, LP-led transaction volume reached $86 billion, driven by record levels of secondary dry powder, tightening bid-ask spreads reflecting robust investor appetite, and a continued scarcity in distribution activity from underlying funds. Buyout funds dominated the LP-led segment, comprising over 80% of transaction volume, with single-digit NAV discounts becoming increasingly common—a significant improvement in pricing conditions relative to historical market dynamics. Pricing for GP-led transactions has similarly improved across the board, with the vast majority of deals now pricing at 90% or higher of net asset value, indicating favorable conditions for sponsors executing secondary transactions.
The sustained growth trajectory underscores a market response to structural supply-demand dynamics: LPs and GPs require liquidity in an environment where traditional distributions remain constrained, while secondary investors maintain elevated dry powder levels seeking deployment opportunities. This imbalance has created a favorable environment for secondary transaction execution and pricing normalization.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.