Retail Capital Surge Powers PE Secondaries Toward $185B+ Year, Jeffries Outlook
- Editor
- Feb 3
- 1 min read
What's New Jefferies' Global Secondary Market Review reveals secondary market transaction volume surged 45% to $162 billion in 2024, shattering the previous record of $132 billion set in 2021, driven by unprecedented levels of dedicated capital and improved pricing.
Why It Matters This dramatic growth signals a fundamental shift in private equity markets, as both limited partners (LPs) and general partners (GPs) increasingly embrace secondary transactions as a strategic tool for portfolio management and liquidity generation.
Big Picture Drivers
Capital Surge: Available dedicated capital reached all-time high of $288 billion, with evergreen retail vehicles emerging as major players
Pricing Recovery: Average LP portfolio pricing climbed to 89% of NAV, marking second consecutive year of 400-basis point improvement
Buyer Evolution: Traditional buyout firms increasingly entering secondary market, enhancing sophistication and strategic focus
Innovation: Alternative transaction structures gaining traction, including preferred equity and managed funds representing 7% of volume
By The Numbers
$75B: GP-led transaction volume (46% of total)
$87B: LP transaction volume (54% of total)
51: Number of deals exceeding $1 billion
84%: Continuation vehicles' share of GP-led volume
Key Trends to Watch
Growing adoption of evergreen retail vehicles with over 10 new vehicles planned for 2025
Increasing specialization in venture and growth secondaries as valuations normalize
Rising importance of real assets secondaries, particularly in energy and infrastructure
Expansion of credit secondaries market with GP-led volume expected to exceed 50% in 2025
The Wrap The secondary market's evolution from niche trading venue to mainstream liquidity solution continues to accelerate, with 2025 poised for further growth as new players enter, structures innovate, and capital availability expands.
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