Trends in the Secondary Market: A Mid-Year Review

We are catching up on posting this mid-year review on the secondary market.

In the first half of 2024, secondary market volume reached between $68 billion and $72 billion , with PJT Park Hill projecting a stronger performance in the second half, potentially bringing total volume to $145 billion.?

Reports estimate year-end figures could range from $137 billion to $145 billion, which would set a new record, surpassing the previous high of $134 billion in 2021. Campbell Lutyens' survey, as cited by Secondaries Investor,? highlights that approximately $166 billion in dry powder, improved macroeconomic conditions, and a rebound in public equity markets are fueling capital deployment and positioning the market for a record year.

Moreover, according to BlackRock, LP-led transactions led the charge in H1 2024 , making up 57% of the record $41 billion in closed volume—up 64% year-over-year.

With strong pricing dynamics and a notable rise in first-time sellers, LPs are seizing opportunities to maintain relationships and maximize returns. Meanwhile, GP-led transactions also thrived, totaling $31 billion, highlighting the continued evolution of the market.

As we look ahead, the appetite for attractive mid-sized deals and technology-focused investments remains strong. With a growing capital base of $189 billion, we’re on track for what could be the highest year on record for transaction volumes.

On the other hand, Private equity continues to be the leading asset class in terms of volume, with several other classes expected to exceed their 2023 figures and experience ongoing growth.?

PJT's report, as cited by Secondaries Investor , indicates that private credit and infrastructure will see smaller increases of $1 billion to $2 billion, while venture secondaries are projected to rise from $17 billion in 2023 to $22 billion by the end of this year. PJT anticipates that deal volume for credit, infrastructure, real estate, and venture secondaries could triple by 2030. However, David Perdue, PJT's global head of private capital solutions, suggested that the report might be "undershooting" projections for some of these asset classes.

As we move forward, the landscape of these asset classes looks promising. Given these dynamics, how will investors adapt their strategies to capitalize on the evolving opportunities within the secondary market? Additionally, what challenges might arise as competition intensifies for these attractive investment opportunities?

Recent News, Deals, and More

• Venture capital firms are embracing secondary transactions to enhance liquidity. Isomer Capital launched a ￡100 million fund for VC stakes, while Launchbay Capital closed $25 million of a targeted $100 million for secondaries.

• Secondary funds are emerging as a hot real estate investment. Goldman Sachs recently closed its largest real estate secondary fund , raising $3.4 billion.

• Coller Capital opened a new office in Canada , appointing Daniel Cohen to lead private wealth distribution. Cohen will work with global teams to expand their secondaries business. Coller has raised over $130 million from Canadian clients and manages $33 billion in private market assets.

• BEX Capital's Fund V , the first post-buyout, reached its target in four months with strong investor backing. It focuses on FoF secondaries, with investments ranging from $5m to $1bn.

• Preqin's report forecasts global alternatives AUM will grow from $16.8 trillion in 2023 to $29.2 trillion by 2029, with private equity surpassing $12 trillion and private debt rising to $2.6 trillion.

Interested in discussing private market secondaries or private debt opportunities, feel free to reach out to me at [email protected] .

You can learn more about Axis Group Ventures at our website here .?

All the best - Tim

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