Nick Paulussen | Executive Director, Capco

Secondary markets for private assets have evolved from a niche liquidity outlet to a cornerstone of modern private-markets investing. Global secondary transaction volume reached a record $162 billion in 2024 – up 45% year-on-year and now representing roughly one-fifth of all private equity exits. This expansion has been fueled equally by traditional LP-led portfolio sales and the rapid rise of GP-led continuation funds, which alone accounted for about half of 2024 volume.

Alongside these deal structures, fund-level NAV-based lending and a new generation of digital trading platforms are broadening access and compressing execution timelines, while a surge of fresh capital – from large institutions to semi-liquid retail vehicles – has deepened market liquidity. 

Regulatory reforms on both sides of the Atlantic aim to standardize processes, enhance valuation transparency, and safeguard investors, even as they introduce new governance requirements. For investors, the maturing secondary ecosystem now offers strategic tools to actively manage portfolio liquidity, recycle capital, and extend ownership of high-performing assets. 

Yet challenges remain: pricing still hinges on volatile NAV discounts, information asymmetry persists, and deal execution can be complex. Mastery of these dynamics is therefore essential for any institution seeking to optimize risk-adjusted returns in an increasingly interconnected private-markets landscape.