NEW REPORT: Private Equity Secondaries Market Provides Liquidity and Flexibility
Dunham: “Secondary transactions provide valuable liquidity and flexibility for investors in a maturing private equity market.”
WASHINGTON, D.C. — The American Investment Council today released a new report examining the growth of the private equity secondaries market in the U.S. The report, using data provided by PitchBook, finds the secondaries market plays an increasingly important role in providing liquidity and portfolio flexibility, while continuing to deliver strong investment performance.
“Secondary transactions provide valuable liquidity and flexibility for investors in a maturing private equity market,” said AIC President and CEO Will Dunham. “Secondaries allow some investors to access cash flow or prudently rebalance when needed, while at the same time aligning fresh capital with seasoned investments.”
Key findings from the report include:
- Providing Liquidity and Market Flexibility: Secondary transactions enable investors to rebalance portfolios, manage cash flow needs, and access liquidity without forcing premature asset sales. By facilitating ownership transfers and pricing liquidity through modest discounts, secondaries help private markets operate more efficiently, similar to the liquidity found in public markets. Additionally, investors who do choose to sell at a modest discount often still earn a positive return over the life of their investment.
- Growing Market Activity: Limited Partner-led (LP) secondaries reached $54 billion in transaction value in the first half of 2025, driven largely by buyout strategies. A broader range of investors, including family offices, are utilizing secondaries to gain exposure and diversification.
- Expanded Use by Fund Managers: General Partner-led (GP) secondaries totaled $48 billion in the first half of 2025, as continuation vehicles and other structures allow sponsors to retain high-performing assets while offering investors optional liquidity.
- Maturing Into Drivers of Strong Returns: While secondaries play an important role in providing liquidity, they have also evolved into a durable source of performance. Investors entering an investment through a secondary transaction gain exposure later in the value-creation cycle. This contributes to attractive risk-adjusted returns, reduced J-curve effects, and earlier cash-flow visibility.
- Supporting Retirement Market Expansion: Growth in evergreen and semi-liquid fund structures, including vehicles designed for defined contribution plans, is increasing demand for secondaries to manage liquidity and portfolio construction as access to private markets expands.
To learn more about how the private equity secondaries market is a key provider of liquidity and flexibility for investors, read the full report.
