The evolving role of secondaries

The secondaries market continues to gain importance as a liquidity solution within private markets, supported by evolving investor needs, increasing market participation and technological advancement. Recent years have seen transaction volumes reach new highs as investors sought to rebalance portfolios, adjust strategic exposures and manage the impact of a more uncertain macroeconomic environment. The expansion of both buyer and seller participation has contributed to a deeper and more efficient market, while secondaries have become a more established component of portfolio construction and management for both limited partners (LPs) and general partners (GPs).

Despite periods of caution during the first half of 2026, market activity continued to accelerate. Uncertainty surrounding the potential impact of artificial intelligence prompted a temporary slowdown in parts of the technology and software sectors as investors reassessed business models and valuation assumptions. In response, transaction activity shifted towards areas such as industrials, healthcare and business services, helping sustain overall market momentum. At the same time, opportunities continue to emerge among businesses with resilient customer bases, differentiated offerings and the ability to adapt to changing market dynamics.

Artificial intelligence is also beginning to influence the way secondaries transactions are evaluated and monitored. Enhanced data gathering, broader analytical capabilities and greater efficiency during due diligence may help investors assess opportunities more effectively. However, investment decisions remain dependent on rigorous underwriting, portfolio construction considerations and risk assessment. AI is best viewed as a tool that can support, rather than replace, investment judgement.

Relationships between LPs and GPs are becoming increasingly collaborative, with investors seeking greater transparency, participation and flexibility in transaction processes. As secondaries strategies continue to mature, attention remains focused on valuation methodologies, liquidity pricing and reporting practices. In this environment, portfolio quality, diversification, resilience and growth potential are likely to remain key considerations for investors evaluating secondary market opportunities.