Equity | Investment Insight
April 26, 2024
PE Secondaries: Evolving Landscape Can Expand Opportunities
Private-equity secondaries have developed into a core alternatives allocation for many investors. Led by the expanding opportunity in GP-led secondaries and heightened liquidity needs, we believe the secondaries market for PE will grow dramatically over the next few years.
KEY TAKEAWAYS:
- Secondaries are now a core allocation for sophisticated private markets investors.
- General Partner (GP)-led secondaries and continued private markets maturation will likely continue to drive overall secondary market growth and innovation particularly given the different return profile of GP-leds than traditional Limited Partner (LP) LP-led secondaries. We believe the market will double or triple in size in the next five years.
- Distinctive attributes that drive differentiation for secondaries as a strategy—and differentiation among managers—will likely continue to persist.
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