Private wealth investors accounted for 22% of the world’s largest secondaries fund.
January 16, 2025 (Preqin News) – Paris-headquartered investment manager Ardian has raised $30bn for its ninth secondaries fund. It’s the largest secondaries fund ever raised, and more than half the total value of secondaries funds raised globally last year.
Ardian Secondaries Fund IX (ASF IX) had a target size of $25bn, and closed at its hard cap, attracting investment from 465 investors across 44 countries – including a $4bn commitment from the Abu Dhabi Investment Authority (ADIA). Ardian’s previous generation fund, ASF VIII, closed in 2020 with $11bn raised. The new fund brings Ardian’s total secondaries AUM to $97bn.
The fund will focus on acquiring stakes in private equity assets and provide liquidity solutions to GPs and institutional investors, and is already more than 50% deployed.
‘Using the secondary market for liquidity and portfolio rebalancing is no longer a one-off decision but now an integral part of institutional investors' private markets investment strategies,’ said Vladimir Colas, EVP and Co-Head of Secondaries at Ardian.
Investors are attracted to secondaries, which offer a shorter J-curve, greater asset visibility, and the potential to rapidly build vintage and manager diversification. More than half (57%) of the LPs surveyed for Preqin’s Investor Outlook: H2 2024 said secondaries provide the best opportunity in private equity.
The inherent diversification is particularly attractive to private wealth investors entering the market or trying to grow exposure quickly. More than a fifth (22%) of the capital raised in ASF IX was from private wealth investors, up from 11% in the eighth fund.
Ardian’s latest fund has propelled secondaries funds with a 2022 vintage to the best fundraising year on record when measured by vintage year (as opposed to final close date). Interest shows no sign of abating, with 122 secondaries funds launched last year, of which 23 are already closed. The other 99 funds are looking to raise $44.5bn, which could push funds with a vintage of 2024 well beyond 2022’s total aggregate capital raised.
2024 fundraising could win out
Secondaries aggregate capital raised by vintage year and funds in market (2015–2024)
Source: Preqin Pro. Data as of January 2025
‘We are actively capitalizing on a generational buying opportunity for secondaries. With the continued exponential growth in private markets, investors increasingly look to secondary buyers to help them actively manage their private equity portfolios. And more recently, with a changing interest rate environment and public market volatility, many find themselves overallocated and in need of a solution,’ said Mark Benedetti, Co-Head of Ardian’s Secondaries platform.
The opinions and facts included within the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin providing the information in this content accepts no liability for any decisions taken in relation to the above.