GP-Led Secondaries Hit $140B: The Liquidity Solution Reshaping Private Markets
bIAnk AI Research · January 2026 · 6 min
The secondaries market is booming at $140B in volume, with GP-led continuation vehicles now representing 55% of all transactions as sponsors seek creative liquidity solutions.
The global secondaries market hit $140 billion in transaction volume in 2025, a 40% increase from the prior year. GP-led continuation vehicles—where a sponsor sells assets from one fund to a new vehicle it also manages—now account for 55% of total volume.
This growth reflects the fundamental liquidity challenge in private markets. With traditional exits (IPOs and M&A sales) constrained, sponsors are using continuation vehicles to generate LP distributions while maintaining ownership of high-quality assets.
Pricing has improved meaningfully. Average discounts have narrowed from 15-20% in 2023 to 5-10% for quality assets in 2026, reflecting both improved market conditions and increased buyer competition from dedicated secondaries funds.
The LP-led segment is also active, with pension funds and endowments using portfolio sales to rebalance allocations. Several major US pension funds have sold multi-billion dollar portfolios to reduce PE exposure, creating opportunities for secondaries specialists.
Looking ahead, the market is expected to exceed $200B by 2027. The growing acceptance of continuation vehicles as a standard GP tool, combined with the $3T+ of unrealized NAV in PE portfolios, provides a massive runway for continued growth.
Key takeaways
- Secondaries volume hit $140B in 2025, up 40% YoY
- GP-led continuation vehicles now 55% of total volume
- Discounts narrowed from 15-20% in 2023 to 5-10% for quality assets
- Market expected to surpass $200B by 2027 driven by $3T+ unrealized PE NAV