2026-03-21
Global Secondaries Market on Track to Surpass $225B in 2026, Led by Non-Buyout Strategies
Private market secondaries volumes are forecast to exceed $225 billion in 2026, according to Houlihan Lokey's latest survey of active buyers and sellers — building on the record $226 billion recorded in 2025. Slow distributions, constrained M&A activity, and expanding LP interest in infrastructure and private credit are the primary drivers. Critically, 96% of respondents expect LP-led and GP-led pricing to remain stable or improve through the year.
Record Volume Forecasted for 2026 The global private equity secondary market is on a trajectory to surpass $225 billion in annual volume during 2026, continuing the momentum that pushed 2025 to a record $226 billion — itself a significant beat of earlier consensus forecasts. These findings are drawn from Houlihan Lokey's most recent survey of active secondary market participants, published this week. Key Drivers of Secondary Market Growth Survey respondents highlighted three main catalysts: Slow distributions (81% of respondents): Exit pipelines via IPO and M&A remain compressed, forcing LPs to seek liquidity through secondaries. M&A slowdown (71%): Subdued deal activity is delaying portfolio company exits, keeping assets locked in aging funds longer. Non-buyout strategy growth (69%): Infrastructure, private credit, and real assets are increasingly participating in secondary market transactions — broadening the opportunity set beyond traditional PE buyout funds. Pricing Outlook: Broadly Stable to Rising A striking 96% of survey respondents expect LP-led and GP-led pricing to remain flat or increase through 2026 — with zero respondents forecasting a significant decline. This reflects both robust demand from well-capitalized secondary funds and the improving quality of assets coming to market. "Several long-term factors are powering secondaries — the spread beyond core PE buyouts into credit and infrastructure, and inflows of new money from both institutional and retail investors." — Matt Swain, Managing Director, Houlihan Lokey Geographic Preferences Investor appetite remains concentrated in North America (86% favorable) and Europe (approximately 75%). Asia continues to attract only about 16% of respondents, reflecting ongoing macro and geopolitical uncertainty in the region. Why This Matters for Private Markets A $225B+ secondary market is no longer a niche alternative liquidity path — it is a core component of the private capital ecosystem. For LPs, secondaries provide portfolio management flexibility without requiring primary market exits. For GPs, continuation vehicles offer a credible alternative to forced sales in hostile exit environments. The continued broadening into credit and infrastructure signals that secondaries are becoming a permanent feature of how private capital is allocated and recycled globally — and the pricing stability forecast suggests buyers remain disciplined even as volumes expand.