As general partners (GPs) and limited partners (LPs) increasingly prioritize liquidity in a market characterized by a lack of distributions, what key trends are driving the rise in secondary market transaction activity?

麻豆社 surveyed secondary investors and analyzed transaction data to delve deeper into these trends.

Annual secondary market transaction volume听

Note: Darker shades denote 麻豆社 2025 projections

2024 was a record year for the secondary market, with $156B of closed transaction volume surpassing the market鈥檚 previous high in 2021, and representing a 35% YoY increase over 2023 volume.

麻豆社 Private Funds Group (PFG) is predicting another record year for the secondary market in 2025, anticipating ~$180B of transaction volume for the year with an even split between LP and GP-led volume.

Key takeaways

GP-led momentum

Strong ongoing GP-led momentum

  • The widespread adoption of GP-led solutions as an attractive liquidity option resulted in this segment of the market achieving $70B of transaction volume, representing nearly 10% of the total exit value for sponsor-backed companies globally
  • Single and multi-asset continuation funds were the most commonly used structures and collectively accounted for over 85% of GP-led volume听

听

LP-led volume

Significant LP-led volume traded听

  • LP-led transaction volume reached $86B as bid/ask spreads continued to tighten driven by strong investor appetite, record levels of secondary dry powder and a continued scarcity in distribution activity听
  • Buyout funds continue to be the most traded fund type making up over 80% of transaction volume with single digit discounts becoming increasingly more common

Pricing improvements

Notable pricing improvements

  • Pricing for GP-led transactions continued to improve across the board with the vast majority of deals pricing at 90%+ of NAV. A record number of deals completed at a premium, particularly in situations involving听resilient buyout assets managed by reputable sponsors

Investors

Expanding investor universe

  • The secondary investor universe continued to broaden significantly throughout 2024 in what has historically been an undercapitalized market
  • Traditional secondary firms continue to launch adjacent strategies, new entrants are emerging, and retail capital is being accessed at scale

VC focus

Increased VC and growth GP-led transactions

  • 2024 marked a banner year for GP-led transactions in the VC and growth space with several prominent managers completing sizable, high-profile transactions
  • These transactions have returned a significant amount of capital to investors, despite a particularly challenging traditional exit backdrop for VC and growth companies

Methodology: Reference to market analysis refers to a survey that 麻豆社 conducted to solicit feedback on secondary market activity in FY 2024 as well as market intelligence that 麻豆社 has gathered from conversations with secondary investors, publicly available information and transaction activity that 麻豆社 was involved with in FY 2024. Certain statistics shown reflect 麻豆社鈥檚 estimates based on data gathered from 麻豆社 survey respondents and publicly available information.

Private Funds Group

A global private capital advisor integrating world-class private placement expertise with a听top-tier secondary advisory platform, raising over $87 billion of new money since 2010

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