By nhoussaine-clareLast updated
Private equity secondaries have become a mainstream liquidity and portfolio management tool for institutional investors. Driven by demand for flexibility, market volume is projected to surpass $140 billion in 2024 and could reach $500 billion by 2030.
GP-led continuation funds, now 80% of GP-led volume, let managers retain strong assets while offering liquidity to LPs. Pricing is more competitive, with LP-led deals averaging 80–84% of NAV, though discounts widen in downturns. Deal structures like deferred consideration and preferred equity help balance risk and return.
As the market matures, best practices, fairness opinions, clear fee disclosures, and independent counsel are essential to ensure transparency, alignment, and investor trust.