Summary
This document is a Secondary Market Report for the year 2024, which outlines the significant developments and trends in the secondary market. It details that the secondary market achieved a record-breaking deal volume of approximately $152 billion, driven by increased liquidity demands and narrowing bid-ask spreads. The report indicates that the GP-led market generated a total volume of $72 billion, with a notable surge in Single-Asset Continuation Funds. The document also discusses the growth of the LP-led market and the factors contributing to the increased pricing and demand for liquidity. It highlights the ongoing capital formation in the secondary market and anticipates continued growth in 2025, as several large secondary managers are expected to hold closings for their funds. The report emphasizes the importance of the secondary market as a key liquidity solution for financial sponsors and limited partners, especially in light of the evolving macroeconomic landscape and the pressures faced by sponsors to deliver near-term distributions to investors.
