Secondary Market Surges to Record $152 Billion Amid Shifting Exit Strategies and Rising Capital Influx
This year, the secondary market hit a record $152 billion in volume, surpassing the previous high set in 2021. Despite positive trends in M&A and IPO markets, limitations on these exits pushed sponsors and limited partners toward GP-led and LP-led secondary markets. New buy-side entrants, rising '40 Act fund AUM, and successful secondary fundraising have increased available capital and driven up pricing. While traditional exit markets are expected to improve next year, sponsors and limited partners are likely to remain active in the secondary market in 2025.