Private Market Secondaries Surge to Record Levels as Investors Seek Liquidity, JPMorgan Says

Private market secondaries are emerging as a critical component of global private capital markets, with transaction volumes reaching record levels as investors seek alternative liquidity solutions amid a prolonged slowdown in traditional exit routes, according to a recent report by JPMorgan.

Global secondaries transaction volume climbed to approximately $226 billion in 2025, marking a 41% increase from the previous year and underscoring the rapid expansion of the market.

The surge reflects a structural shift in private markets, where limited partners and fund managers are increasingly turning to secondary transactions to unlock capital in an environment characterized by reduced initial public offerings and slower merger activity.

Liquidity Constraints Drive Market Growth

The report highlights that the ongoing slowdown in IPOs has created a bottleneck in traditional exit channels, leaving investors with capital tied up in aging portfolios. As a result, secondaries—transactions involving the sale of existing private market stakes—have become a key mechanism for generating liquidity.

This dynamic has elevated the role of secondaries from a niche strategy to a central feature of private market functioning. Investors are increasingly relying on these transactions to rebalance portfolios, manage risk exposure, and redeploy capital into new opportunities.

Market participants note that secondaries provide a flexible alternative to traditional exits, particularly in periods of market uncertainty. However, the transactions often involve complex structures and limited transparency, making valuation and due diligence more challenging.

Expanding Scope Across Asset Classes

While historically concentrated in private equity buyouts, the secondaries market has expanded across asset classes, including private credit, infrastructure, and venture capital. This diversification reflects the broader growth and maturation of private markets.

JPMorgan’s analysis indicates that secondaries are becoming an integral part of portfolio construction, offering investors a way to gain exposure to seasoned assets with shorter holding periods compared to primary fund commitments.

The rise of general partner-led transactions, including continuation funds, has also contributed to market growth. These structures allow fund managers to retain high-quality assets while providing liquidity options to existing investors.

Complexity and Valuation Challenges

Despite its rapid growth, the secondaries market presents unique challenges. Unlike public markets, where pricing is transparent and continuous, private market transactions rely heavily on negotiated valuations and limited available data.

JPMorgan noted that the lack of publicly disclosed information can complicate price discovery and increase execution risk. Investors must navigate factors such as underlying asset performance, fund structure, and market conditions when evaluating opportunities.

This complexity has led to increased demand for specialized expertise and advisory services, as market participants seek to structure transactions efficiently and mitigate risk.

Structural Shift in Private Markets

The expansion of secondaries reflects broader changes in the private capital ecosystem. As private markets grow in size and importance, the need for liquidity solutions has become more pronounced.

Secondaries are increasingly viewed not only as a tactical tool but as a strategic allocation within private market portfolios. They offer investors diversification, improved liquidity management, and access to more mature investments.

The trend also highlights the convergence of public and private markets, with investors seeking more flexible and dynamic approaches to capital allocation.

Outlook

JPMorgan expects the secondaries market to continue expanding in the coming years, supported by ongoing portfolio rebalancing, tighter bid-ask spreads, and innovation in deal structures.

As private markets evolve, secondaries are likely to play an increasingly central role in facilitating capital flows and maintaining market efficiency. However, the growing complexity of transactions and the need for robust valuation frameworks will remain key considerations for investors.

The record growth in secondaries underscores a fundamental shift in how private market participants manage liquidity, signaling a more mature and interconnected investment landscape.

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