Secondary Market Mid-2026: Where Capital Is Compounding
The private secondary market crossed 160 billion dollars in transaction volume in 2024, up from 68 billion in 2019, with preliminary 2025 data tracking near 175 billion. What was once a niche liquidity solution for stranded LPs is now the third-largest source of capital flow in private markets behind primary fund commitments and direct co-investments. The capital compounding into secondaries is patient, structurally different, and oriented toward yield and duration rather than venture-style upside.
Three implications follow for growth-stage founders. The LPs sitting behind the funds pitching them today increasingly entered through a secondary rather than a primary commitment, changing timeline pressure and exit expectations. GP-led secondaries and continuation vehicles now represent 47 percent of total secondary volume, meaning many portfolio companies are being held longer under capital structures the founder did not sign up for. And the pricing discipline of the secondary market is now anchoring primary market valuations more than at any point in the last decade.
The single most important point: the secondary market is no longer a downstream liquidity mechanism. It is an upstream pricing signal, and the founders who understand it are pricing their rounds accordingly. This paper walks through the structural drivers behind the market's growth, the specific capital sources compounding into it, the pricing behavior propagating back into primary rounds, and a practical framework for founders preparing for a capital event in the next 12 to 18 months.
- Global secondary market volume reached 160 billion dollars in 2024, up from 68 billion in 2019, with 2025 tracking toward 175 billion (Source: Evercore Private Capital Advisory Annual Volume Survey).
- GP-led secondaries grew from roughly 12 percent of secondary volume in 2018 to 47 percent by 2024 (Source: Coinlaw industry aggregation and Evercore PCA).
- Sovereign wealth funds allocated an estimated 42 billion dollars to secondary strategies in 2024, up from 12 billion in 2019, representing roughly 25 percent of total volume (Source: IFSWF and SWF Institute aggregated data).
- Average secondary allocation among the 100 largest U.S. public pension funds rose from 4 percent of PE commitments in 2019 to 11 percent in 2025 (Source: State Street Global Advisors institutional allocator research).
- Median secondary pricing on venture and growth positions cleared at 71 percent of NAV in 2024, tightening to roughly 82 percent in the first half of 2025 (Source: Evercore Private Capital Advisory).
- Committed dry powder in secondary-focused strategies exceeded 340 billion dollars at Q1 2026, up from 108 billion in 2019, with the top five managers controlling more than 170 billion (Source: Coinlaw private capital tracking).
FAQ
How large is the private secondary market in 2026?
The private secondary market processed 160 billion dollars of transaction volume in 2024 according to Evercore Private Capital Advisory, with preliminary 2025 figures tracking toward 175 billion. That represents more than a doubling from the 68 billion transacted in 2019, with compounding growth exceeding 18 percent annually over the five-year period.
What percentage of secondary market volume is GP-led?
GP-led secondaries, principally continuation vehicles, grew from roughly 12 percent of secondary volume in 2018 to 47 percent by 2024 according to Coinlaw industry aggregation. The shift reflects active portfolio management by general partners who want to hold quality assets longer, rather than the stranded-LP liquidity that historically defined the market.
What discount to NAV do secondary transactions typically clear at?
Median secondary pricing on venture and growth positions traded at 71 percent of NAV in 2024 according to Evercore PCA data, tightening to roughly 82 percent in the first half of 2025. That 71 to 82 percent range is now anchoring how sophisticated LPs think about mark-to-market on their primary positions.
How should growth-stage founders think about the secondary market when pricing a primary round?
Founders should establish a view of what their equity is currently trading at in the secondary market, understand which existing investors are approaching fund-life pressure, engage early if a continuation vehicle is a plausible outcome, price the primary round with awareness of secondary discount discipline, and choose a Series C or growth-round lead with awareness of their secondary market posture.
Who is Yanne Capital?
Yanne Capital is an independent boutique investment bank advising growth-stage companies on equity, debt, and M&A transactions across 26 sectors, with 240+ closed deals and relationships with 3,500+ institutional investors globally.
Where can a founder reach Yanne Capital?
contact@yannecapital.com — the firm inbox routes to the closer best fit for the mandate, and Yanne Capital responds to every inbound within 48 hours.
Discuss this with our team
If you are 12 to 18 months from a capital event and want to understand what the secondary market is telling you about your primary round pricing, Yanne Capital will walk through the specific secondary market dynamics affecting your cap table and help you calibrate your process accordingly. Reach out at contact@yannecapital.com.