Secondaries Q1 2026 Update

Market Commentary

• The secondary market reached a record $240 billion in deal volume in 2025, surpassing $200 billion for the first time and marking a 48% Year-over-Year increase, driven by liquidity needs amid a slow exit environment and record levels of dedicated capital.
• Private credit secondaries achieved record levels of activity, with almost 300% YoY growth in GP-led transaction activity, reflecting robust demand for direct lending positions.
• Closed continuation vehicle volume surged in 2025, rising 93% YoY in Europe, 34% in North America, and 15% in the rest of the world.
• Secondaries fundraising expected to remain strong in 2026, with Cambell Lutyens projecting $130-$145 billion and Evercore estimating $200+ billion to be raised over the next 12 months, supported by growing activity from specialized funds and evergreen capital across private credit, infrastructure, and structured solutions.

Secondary transaction volume has accelerated and is forecast by Jefferies to approach $300 billion annually in the next 12-24 months, bolstered by an expanding universe of investors in the space and increased liquidity needs amid longer holding periods.

While GP-led volume for buyout funds increased from $58 billion to $81 billion, representing an increase of 39%, even more remarkable was the near threefold growth in volume of private credit secondaries. Private credit was supported by strong fundraising, growing demand for direct lending portfolios managed by blue-chip sponsors, and new entrants (including evergreen vehicles), seeking yield and insulation from interest rate volatility. 

Secondaries dry powder reached an estimated $327 billion in 2025, but the growth in transaction volume has outstripped fundraising since 2023, indicating capital constraints may become a challenge at current growth rates.

Beyond dedicated secondaries fundraising, secondaries investors have an estimated $477 billion of available capital. Closed-end fundraising for secondaries strategies reached 18% of total private capital raised in 2025 (up from 7% in 2021), alongside strong inflows from evergreen retail vehicles and more traditional LPs participating directly in secondaries.

Sources: Campbell Lutyens, Evercore, Jefferies, and PJT