Key Takeaways
- • Global secondaries transaction volume reached a record $162 billion in 2024, a 45% increase from 2023, according to Barclays Private Bank's August 2025 review drawing on Jefferies' Global Secondary Market Review.
- • The secondaries market is projected to reach $300 billion by 2030, reflecting rising investor interest in private equity secondaries.
- • Secondaries dry powder closed 2024 at $216 billion, roughly 1.3 years of deal activity at current pace versus about 4.5 years for traditional private equity, signaling a persistent supply-demand imbalance.
- • LP-led secondaries typically price at a discount to NAV, while GP-led deals are generally priced at or above NAV, with value driven by long-term asset performance.
- • Secondaries can mitigate the J-curve by offering access to mature, cash-generating assets, enabling earlier distributions, though the asset class remains illiquid and valuations can be complex.
Summary
Barclays Private Bank and Wealth Management has published a spotlight on private equity secondaries, describing a market that has grown rapidly and remains structurally undercapitalized. Global secondaries transaction volume surged to a record $162 billion in 2024, up 45% from 2023, according to the report, which cites Jefferies' Global Secondary Market Review. Secondary fund deal activity has more than doubled since 2018, and the market is projected to reach $300 billion by 2030.
The secondaries market comprises two principal structures. In LP-led transactions, limited partners sell fund interests, usually to gain liquidity or reallocate capital. Because of limited transparency and illiquidity, these deals typically price at a discount to net asset value, with returns depending on acquiring assets below NAV and realizing appreciation. GP-led transactions, in which general partners move high-performing portfolio companies into new vehicles to extend holding periods, are described as fast growing but the most undercapitalized segment. They typically price at or above NAV, with value driven by long-term performance rather than entry discounts.
Barclays highlights a persistent supply-demand imbalance. Dry powder in the secondaries market closed 2024 at $216 billion, enough to support only about 1.3 years of deal activity at the current pace, compared with roughly 4.5 years for traditional private equity. Transaction volumes continue to grow faster than capital raising.
The report also points to the J-curve as a driver of investor interest. Because secondary investors purchase mature funds already generating cash flows, they can shorten the period of negative early returns caused by upfront fees and slow value creation, leading to earlier distributions. Secondary funds additionally offer diversification across managers, strategies, sectors, geographies and vintage years within a single transaction.
The report cautions that secondaries do not eliminate illiquidity. Private equity remains far less liquid than public markets, valuations can be complex and may not reflect underlying asset value, and cash flows depend on fund distributions. Barclays concludes that experienced managers with track records through market cycles are essential for managing downside risk, and that secondaries can be a valuable addition to a diversified long-term portfolio.
The secondaries market comprises two principal structures. In LP-led transactions, limited partners sell fund interests, usually to gain liquidity or reallocate capital. Because of limited transparency and illiquidity, these deals typically price at a discount to net asset value, with returns depending on acquiring assets below NAV and realizing appreciation. GP-led transactions, in which general partners move high-performing portfolio companies into new vehicles to extend holding periods, are described as fast growing but the most undercapitalized segment. They typically price at or above NAV, with value driven by long-term performance rather than entry discounts.
Barclays highlights a persistent supply-demand imbalance. Dry powder in the secondaries market closed 2024 at $216 billion, enough to support only about 1.3 years of deal activity at the current pace, compared with roughly 4.5 years for traditional private equity. Transaction volumes continue to grow faster than capital raising.
The report also points to the J-curve as a driver of investor interest. Because secondary investors purchase mature funds already generating cash flows, they can shorten the period of negative early returns caused by upfront fees and slow value creation, leading to earlier distributions. Secondary funds additionally offer diversification across managers, strategies, sectors, geographies and vintage years within a single transaction.
The report cautions that secondaries do not eliminate illiquidity. Private equity remains far less liquid than public markets, valuations can be complex and may not reflect underlying asset value, and cash flows depend on fund distributions. Barclays concludes that experienced managers with track records through market cycles are essential for managing downside risk, and that secondaries can be a valuable addition to a diversified long-term portfolio.
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