Are we in a golden age for private market secondaries?

  • Investors are facing an array of liquidity challenges relating to falls in public market valuations and reduced distributions from private market portfolios
  • This is increasing the volume of deals flowing through the secondary markets
  • The longer-term growth story continues for secondaries across private equity, and in the rapidly-evolving areas of infrastructure and private credit
  • Market inefficiencies and current valuation dynamics are also creating a favorable pricing environment for secondary managers

In the wake of a significant market dislocation and against a challenged economic backdrop, the secondaries market has come to the fore as a key tool for investors seeking liquidity, as well as those seeking to manage and rotate their roster of private markets managers. This builds on a long-term growth story that has seen secondaries top $100bn in annual transaction volume over the past two years with growth not only in private equity (PE) but also in the rapidly evolving secondary markets for infrastructure and private credit.

What this means in practice is that there is a rich stream of deal flow, and compelling pricing dynamics, for secondaries managers in the current market – and so a potentially unique opportunity for investors to access the best of private markets via secondary investments. This paper, the first in our new Pantheon Perspectives series offering our insights into key market trends, will provide a detailed view on why the current market conditions are generating increased opportunities in secondaries, as well as a look at how trends compare across private market asset classes.

View the report