Secondaries Volume Down Year-on-Year in Q1, but Remains ‘Resilient’: PJT Partners

Why It Matters

The slowdown signals short‑term macro pressure but underscores the market’s role as a reliable liquidity source for private‑equity investors. Continued GP‑led growth and credit‑secondaries resilience position the sector for sustained capital inflows.

Key Takeaways

• Q1 2026 secondary volume fell 11% to $40 bn.
• GP‑led deals made up about 55% of total activity.
• LP‑led transactions stayed strong, reaching roughly $18 bn.
• Continuation vehicles now hold assets for an average of seven years.
• Credit‑focused secondaries remain resilient amid public market volatility.

Pulse Analysis

The private‑secondaries market entered 2026 with a modest contraction, as transaction volume fell to roughly $40 bn in the first quarter, an 11% decline from the same period last year. The dip reflects heightened macro‑economic uncertainty, including geopolitical tensions and a rapid repricing of technology equities that have limited traditional exit routes for private‑equity firms. Nonetheless, the market’s underlying health remains solid, with investors still seeking secondary transactions as an "all‑weather" liquidity tool when primary exits are constrained.

A deeper look reveals a structural shift toward GP‑led solutions, which now represent about 55% of total secondary volume. Continuation vehicles dominate the deal landscape, extending the average holding period for private‑equity assets to seven years—up from five to six years just a few years earlier. This longer horizon signals confidence in the ability of seasoned sponsors to manage assets through market cycles. Meanwhile, the credit‑focused secondary segment has shown notable resilience, absorbing pressure from falling public valuations of private‑credit managers and heightened tender activity in BDCs. Investors are gravitating toward high‑quality portfolios backed by sponsors with proven track records, positioning credit secondaries as a stable income source.

Looking ahead, PJT projects renewed momentum as 2025’s record volumes set a strong foundation. Record capital availability, continued adoption of GP‑led and LP‑led structures, and expanding opportunities in infrastructure, credit, and venture‑growth portfolios are expected to drive growth. For limited partners, the resilient secondary market offers a diversified liquidity outlet, while general partners can leverage it to manage portfolio risk and extend fund life cycles. The confluence of abundant capital and evolving transaction formats suggests the secondary market will remain a pivotal component of private‑market investing throughout 2026 and beyond.