Consistent performance
Historically, secondary vintages have delivered higher median returns than other private-markets strategies, with significantly lower dispersion across funds’ net IRRs (Exhibit 3).
Much of that stability stems from the very architecture of the asset class. Features such as accelerated distributions, informational advantages that tilt selection toward stronger assets and managers, as well as diversification across seasoned, partially de-risked holdings act as natural stabilisers.
The rise of GP-led transactions
Within the secondaries market, GP-led transactions have expanded over recent years, growing from 24% of volumes in 2012 to nearly half today (Exhibit 4). Their rapid growth reflects strong buyer demand and their increased use by sponsors, with rising numbers of leading GPs bringing higher-quality assets to market.
At a time when IPOs, strategic trade and sponsor-to-sponsor exits have become more constrained, GP-led deals are providing managers with valuable realisation optionality.
However, their rapid adoption also points to a broader structural evolution, with GP-led deals now serving as a routine mechanism for extending ownership and optimising investment outcomes. These transactions allow GPs to realise further value creation potential by lengthening investment horizons of their best assets and avoiding selling to a competitor.
This shift has made single- and multi-asset transactions a defining feature of today’s opportunity set. Three-quarters of leading GPs have now completed deals, and transaction sizes are trending larger.2 Continuation vehicles, in particular, have emerged as the structure of choice, offering sponsors flexibility to extend ownership of prized companies, rebalance portfolios and deliver interim liquidity to LPs.
For investors, the transactions represent a compelling opportunity within the secondaries market, they provide investors with concentrated stakes in seasoned assets managed by top-tier sponsors. The growing interest in the market is therefore unsurprising. A recent survey indicates that investors now target higher returns from GP-led single-asset transactions (Exhibit 5), underscoring why these are among the most sought-after deals in the secondaries market.
Conclusion
Secondaries have become a core component of a private-markets allocation, powered by structural demand and enabled by an innovative and dynamic marketplace more than two decades in the making.
Their enduring appeal lies not in cyclical dynamics, but in a durable set of advantages that continue to resonate with investors. This includes a unique combination of strategic flexibility, accelerated distributions, enhanced access and selectivity, consistent returns and the maturing GP-led market.
Record deployment testifies to their growing centrality. With investors requiring greater flexibility, liquidity visibility and diversification, secondaries are playing an increasingly integral role in modern portfolio strategies.
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1 Jefferies, Global Secondary Market Review, July 2025.
2 Jefferies, Global Secondary Market Review, July 2025.