Investment bank William Blair forecasts secondaries deal value could reach record $250bn in 2026
Private equity secondaries funds raised $29.7bn globally in Q1, with over $112.5bn targeted across funds in market
Lowest discounts in asset classes with strong buyer interest and predictable cash flows
Secondaries AUM more than doubled in the five years leading to 2024, and is forecast to hit $1.3tn by 2030, according to Preqin forecasts
June 3, 2026 (Preqin First Close | Preqin News) – Portfolio rebalancing. Liquidity management. J-curve mitigation. Vintage and manager diversification.
These are just a few terms that are used to explain how and why the secondaries strategy has come to the fore in private markets fundraising and dealmaking.
That view is echoed by investment bank William Blair. In its 2026 Secondary Market Report, it estimated total transaction value at $220bn in 2025, with increases across both LP- and GP-led deals, while forecasting that deal volume could hit a new high of $250bn in 2026.
The shift is also reflected in fundraising. Private equity secondaries funds raised $29.7bn globally in the first quarter of 2026 – more than a third of the $80.6bn raised in the whole of 2025 and only narrowly behind VCs Q1 total of $31.8bn, according to Preqin data. With 216 secondaries funds currently in market targeting $115.4bn, fundraising momentum shows little sign of slowing.
The backdrop to this is the muted exit environment. Aggregate buyout exit value fell to $95.6bn in Q1 2026, a 34% decline from the previous quarter and the first time it’s dropped below $100bn since Q1 2024, according to our Private Equity Q1 2026 update.
‘Secondaries remain the clearest beneficiary of the current environment and are likely to continue attracting a disproportionate level of capital in the near term,’ writes Eric Mogilevskiy, Vice President, Private Markets Research and author of the report.
Private equity secondaries AUM has more than doubled in size over a five-year period, from $224.2bn in 2019 to $522.2bn at the end of 2024, at a CAGR of 18.4%. It’s forecast to double again to reach $1.3tn by 2030, according to Preqin’s Private Markets in 2030 report.
James Jupp, Investment Partner at secondaries manager Hollyport Capital, told Preqin News that there is a strong opportunity in the secondaries market, given its relatively small share of total private equity deal flow.
‘Looking at the supply-demand dynamic, the increase in competition and increase in capital raised haven’t had a negative impact on investment opportunities.'
The growth of the secondaries market reflects a broader structural shift in how investors use the strategy. Recent Preqin First Close coverage has highlighted a sea change, with secondaries increasingly viewed as a core portfolio management tool rather than a liquidity backstop.
Another indicator of growth is the purchase of secondaries specialists by other asset managers. International investor EQT acquired Coller Capital for $3.2bn in January, citing a ‘diversified client proposition spanning institutional funds, private wealth evergreen products, and insurance-dedicated solutions’.
Nevertheless, secondaries still account for a small share of overall private markets activity. As noted in a recent Preqin First Close Q&A, with Michael Bego at Kline Hill Partners, the market’s annual transaction volume of more than $200bn represents roughly 2% of total private equity assets.
Speaking with Preqin News, Jupp added: ‘If distributions continue to be subdued, at what point do LPs say, you know what, we need to utilize the secondary market to actively manage our liquidity and cash flow requirements.’
Beneath the surge in secondaries volumes, discounts to net asset value (NAV) can vary widely across asset classes. According to Preqin data, both private equity and infrastructure secondaries traded at discounts under 10% in 2025, reflecting more predictable cash flows and deeper buyer appetite.
Number of secondaries funds closed and aggregate capital raised, 2021—Q1 2026
Source: Preqin quarterly updates.
VC secondaries discounts have seen more variation over the past couple of years, given the higher risk nature of the asset classes. Preqin’s aggregation of investment bank consensus shows they believe 2025’s price relative to NAV will be between 75–78%.
Many institutional investors, across endowments, pension plans, and sovereign wealth funds, now plan periodic secondaries sales to fine-tune exposures or manage long-term private markets allocations.
‘Why does the secondaries market exist? It exists to provide liquidity to an inherently illiquid asset class. With the slowdown in distributions across private markets, there is a greater need than ever to utilize the secondaries market, reinforcing its strategic role as an active portfolio management tool,’ Jupp told Preqin News.
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The opinions and facts included in the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin accepts no liability for any decisions taken in relation to the above.