The private equity secondary market experienced a historic expansion in 2025, with transacted volume skyrocketing to $233 billion—a 53% increase from $152 billion in 2024. According to a report published by Lazard, the surge was perfectly balanced between GP-led deals ($116B) and LP-led transactions ($117B), as both sponsors and limited partners sought liquidity avenues beyond the recovering M&A and IPO pipelines.

A primary driver of 2025’s growth was the evolution of GP-led transactions. Sponsors are increasingly using Continuation Funds (CVs) to retain “trophy” assets, thereby extending holding periods while providing liquidity to existing investors. This trend has moved significantly into the Middle Market, where sponsors use CVs to manage Net Asset Value (NAV) exposure and expand their total Assets Under Management (AUM).

The market’s depth has been bolstered by a fresh wave of entrants, particularly firms with direct investing backgrounds now focusing on single-asset CVs. Furthermore, the “retailization” of the asset class has provided a new liquidity engine. Investors are increasingly leveraging ’40 Act and Evergreen vehicles to pool retail capital, significantly increasing the average check size for massive GP-led deals.

Looking ahead to 2026, the secondary market is expected to remain a strategic cornerstone for liquidity. With investors now specializing in specific sectors and a record level of “dry powder” from successful fundraising, the market is poised to sustain its strong pricing and high transaction volume.

End Notes

Source: https://www.lazard.com/research-insights/lazard-2025-secondary-market-report/