Key Takeaways
- • Record secondaries market volume reached $160 billion in 2024, with GP-led deals capturing $71 billion (44% of total market), establishing a new transaction high for the sector and signaling sustained institutional demand for secondary positions.
- • Lexington Partners secured Secondaries Firm of the Year in the Americas at the inaugural PEI Secondaries Awards 2024, underscoring the firm's market leadership as specialization within the secondaries space intensifies.
- • 64% of institutional investors surveyed in November 2023 identified secondaries as providing superior risk-adjusted return opportunities, driving capital reallocation toward secondary positions despite broader fundraising headwinds across alternative assets.
- • Secondaries market momentum is expected to continue through 2025, supported by historically consistent returns, portfolio diversification benefits, and sustained LP demand for liquidity and exposure optimization in private markets.
Summary
The secondaries market for private equity closed 2024 with record transaction volumes, demonstrating resilience and accelerating specialization within the asset class. The market processed $160 billion in total deal volume during the year, with GP-led secondary transactions—whereby general partners manage continuation funds or secondary processes—reaching $71 billion and accounting for 44% of all secondaries activity. This represents a structural shift in how institutional capital is being deployed, as secondary buyers increasingly purchase existing fund commitments and limited partner positions directly from primary investors or secondary sellers.
Investor appetite for secondaries remains elevated despite macroeconomic uncertainty and capital constraints across the broader alternative investment industry. According to institutional investor surveys conducted in November 2023, 64% of LPs identified secondaries as offering the most attractive opportunities in private markets, with investors actively shifting capital allocation toward secondary strategies. The appeal centers on historically consistent and strong returns, improved pricing transparency following market dislocations, and the ability to access high-quality private assets at valued entry points without the vintage year risk of primary fund commitments.
The PEI Group's inaugural Secondaries Awards 2024 recognized Lexington Partners as Secondaries Firm of the Year in the Americas, reflecting the firm's scale, deal execution, and market positioning as the secondaries market becomes increasingly specialized and competitive. This marks a significant milestone for the asset class, as major industry award programs now dedicate standalone recognition categories to secondaries rather than subsume them within broader private equity rankings. Market participants and analysts project continued robust activity through 2025, driven by aging fund portfolios, LP liquidity demands, and the continued maturation of secondaries as a distinct alternative asset class with its own operational frameworks and investor base.
Investor appetite for secondaries remains elevated despite macroeconomic uncertainty and capital constraints across the broader alternative investment industry. According to institutional investor surveys conducted in November 2023, 64% of LPs identified secondaries as offering the most attractive opportunities in private markets, with investors actively shifting capital allocation toward secondary strategies. The appeal centers on historically consistent and strong returns, improved pricing transparency following market dislocations, and the ability to access high-quality private assets at valued entry points without the vintage year risk of primary fund commitments.
The PEI Group's inaugural Secondaries Awards 2024 recognized Lexington Partners as Secondaries Firm of the Year in the Americas, reflecting the firm's scale, deal execution, and market positioning as the secondaries market becomes increasingly specialized and competitive. This marks a significant milestone for the asset class, as major industry award programs now dedicate standalone recognition categories to secondaries rather than subsume them within broader private equity rankings. Market participants and analysts project continued robust activity through 2025, driven by aging fund portfolios, LP liquidity demands, and the continued maturation of secondaries as a distinct alternative asset class with its own operational frameworks and investor base.
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