The secondaries market has already proven itself as private equity’s liquidity engine. From mega-funds like Ardian’s $30 billion fund to record-breaking $162 billion in 2024 deal volume, secondaries are now mainstream. But the story doesn’t stop there.
The next phase of growth will be defined not just by scale but by new entrants, democratization of access, and specialized strategies. Together, these forces point to a future where secondaries are larger, more diverse, and embedded across every corner of private markets.
The Secondaries Investor 50: 2025 highlighted a striking fact: 18% of the ranking consisted of new entrants, including firms like Accel-KKR and Leonard Green & Partners.
Accel-KKR debuted at number 37 with $2.2 billion raised for a vehicle targeting software-focused single-asset continuation funds. Leonard Green & Partners entered at number 45, reflecting the interest of traditional buyout firms in the secondaries space.
These new entrants demonstrate that secondaries are no longer the exclusive domain of specialist firms. Buyout houses, growth equity managers, and multi-strategy platforms are all launching dedicated secondaries vehicles, adding depth and competitiveness to the market.
Historically, secondaries were the preserve of institutional investors. That is changing. Semi-liquid funds, structured to allow periodic liquidity, are giving high-net-worth individuals (HNWIs) access to secondaries. Global wealth management platforms are positioning secondaries as an attractive alternative for private clients, offering private equity-style returns with shorter durations.
Retail inflows remain small compared with institutional allocations, but they are expected to grow rapidly and diversify the investor base. This democratization is critical: it expands the pie of available capital while also smoothing the episodic nature of institutional LP selling, providing a more stable flow of liquidity to the market.
The rise of tech-focused vehicles is another hallmark of secondaries’ future. Accel-KKR’s fund aimed at software single-asset continuation deals is a prime example. Sector specialization matters because it enables managers to bring deep expertise to underwriting assets. In the case of technology, high-quality growth companies in software, SaaS, and AI are particularly well-suited for GP-led continuation structures.
Investor demand for technology remains resilient, even in broader market downturns. The combination of strong appetite and specialized underwriting is likely to make sector-specific secondaries vehicles a lasting feature of the landscape. Beyond tech, the model is already expanding into infrastructure, real estate, and private credit.
The definition of secondaries is broadening. Once limited to LP stakes in private equity funds, today’s secondaries strategies span multiple asset classes. Private equity remains the core, with a mix of LP stakes and GP-leds. But real estate is also gaining traction, as investors seek liquidity from traditionally illiquid property vehicles. Infrastructure, with its long-dated assets, has found a natural fit for continuation funds. Private credit is another emerging arena, with rising allocations creating new opportunities for secondary sales.
This cross-asset integration suggests that the secondaries market could become the central liquidity hub for all private assets, a role that would significantly expand its scale and influence.
While the future looks expansive, challenges remain. Deal volumes are outpacing human capital, leaving firms short on experienced “deal captains” to lead multiple transactions in parallel. Even with fundraising tailwinds, temporary shortages of dry powder create competition and pricing pressure.
As retail access grows, regulators may impose stricter oversight on transparency, valuation, and fees. And like all markets, secondaries remain vulnerable to cyclicality: geopolitical shocks, such as U.S. tariffs in 2025, can temporarily disrupt activity, even if the market has shown resilience in bouncing back.
These hurdles are not roadblocks, but they do underline the need for stronger infrastructure, governance, and talent pipelines as secondaries scale further.
The expansion of secondaries is opening new opportunities across the ecosystem. For investors, it provides access to private markets with reduced blind-pool risk and greater flexibility. For GPs, it ensures the permanent adoption of continuation funds as strategic tools rather than temporary fixes. For new entrants, it creates space for niche vehicles specializing in sectors or asset classes underserved by mega-managers. And for the industry at large, integration with retail channels could drive the next trillion dollars into private markets.
The breadth of opportunities underscores why secondaries are transitioning from an alternative strategy into a mainstream pillar of global finance.
Despite strong growth, many insiders argue the market remains undercapitalised relative to the scale of opportunity. Evercore estimates buyers are targeting $218 billion of new capital over the next year, reflecting how demand for secondaries continues to outpace the capital available.
As the pie expands, both in terms of deal types and investor bases, the need for capital will only intensify. This tension between rising opportunity and limited capital is a signal of how central secondaries have become to private markets.
The future of secondaries will be defined not just by the size of funds, but by their diversity. New entrants are widening the playing field, retail capital is opening the strategy to millions of investors, and sector-specific vehicles are pushing the boundaries of specialization.
What was once a niche trading market for opportunistic players has become a strategic financing mechanism at the heart of global capital markets. The next frontier will see secondaries integrated across asset classes, democratized for retail investors, and fine-tuned for sector-specific opportunities.
As the SI 50: 2025 makes clear, secondaries are not just bigger. They are getting broader, more accessible, and more innovative than ever before.
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