Introduction

The Secondaries: Accessing Quality Private Assets & Institutional Liquidity in Private Markets

A Specialized Briefing for Financial Planners, CPAs, Attorneys, and High-Net-Worth Investors on the Evolution of Private Equity Secondaries

As traditional IPO and M&A exit paths remain constrained, a new era of Secondaries has emerged. No longer considered a distressed or opportunistic strategy, the secondary market has evolved into a $160B+ institutional marketplace where leading General Partners are utilizing continuation vehicles to retain their highest-performing assets while inviting new capital to participate.

For sophisticated advisors and high-net-worth investors, this creates a unique opportunity to access mature, high-quality private assets, often at attractive entry points and with reduced blind-pool risk.

This briefing will explore how the secondary market is reshaping private market access and why it is increasingly becoming a core liquidity mechanism within private equity.

Key Features

The Rise of the Trophy Asset

Top-tier managers are increasingly moving their strongest portfolio companies into GP-led continuation funds, allowing investors to maintain ownership of their highest-performing assets while offering new investors the ability to participate in proven businesses.

Structural Alpha

Modern secondary strategies now include multiple structures, including:

• LP-led portfolio transactions

• GP-led continuation vehicles

• Evergreen or semi-liquid vehicles designed for private wealth investors

These structures offer investors access to institutional opportunities previously limited to large pension funds and endowments.

The Mathematics of Secondaries

Secondaries historically target 15–20% IRRs, supported by entry at discounts to NAV and exposure to assets that are already partially matured within their lifecycle.

This briefing will examine how return expectations may evolve within the 2025–2026 macro environment.

Fee Transparency

We will examine the economics of secondary investments, including how management fees and carried interest structures align with investor participation and how discounts can offset underlying fee layers.

Market Outlook

With projected market volume expected to exceed $250B in the coming years, the secondary market is increasingly viewed as a permanent liquidity pillar within private markets rather than a cyclical opportunity.

Benefits for Investors

Mitigating the “J-Curve”

Traditional private equity investing often experiences negative returns in the early years as capital is deployed.

Secondary investments allow investors to enter funds later in their lifecycle, potentially benefiting from assets that are already operational and approaching liquidity events.

Access to Institutional-Quality Assets

GP-led secondary transactions often provide exposure to high-growth companies and established industry leaders that may no longer be accessible through primary fund offerings.

Reduced Blind Pool Risk

Unlike primary private equity funds where investors commit capital before assets are identified, secondary investors gain visibility into existing portfolio companies and performance history.

Potentially Lower Volatility

Historically, secondary investments have demonstrated lower loss ratios compared to primary private equity due to increased transparency and asset maturity.

Considerations

While secondaries offer compelling advantages, investors and advisors should carefully evaluate several factors.

Liquidity Profile

Although shorter than traditional private equity funds, secondary investments typically involve investment horizons of approximately 5–7 years.

Fee Structures

Some transactions may involve layered fee structures. Understanding how discounts to NAV and transaction terms offset these fees is essential for evaluating net returns.

Market Cycles

Secondary market activity may fluctuate depending on broader capital market conditions, liquidity needs of institutional investors, and macroeconomic trends.

Advisor Suitability

Secondaries may be particularly relevant for clients seeking:

• portfolio diversification within private markets

• shorter duration private equity exposure

• potential liquidity laddering strategies for estate planning or wealth transfer structures

  
  

Conclusion

Discover How Secondaries Are Reshaping Private Market Investing

The secondary market has evolved into a sophisticated institutional ecosystem offering investors access to mature private assets, increased transparency, and improved liquidity dynamics.

Join this specialized briefing to gain a deeper understanding of how secondary investments are transforming private market participation and why advisors are increasingly incorporating these strategies into client portfolios.

Reserve your seat for the upcoming EDGE briefing.