Secondaries Surge: Private Markets Build a New Liquidity Machine

UBS argues the explosive growth in private-market secondaries is no longer cyclical, but structural, as investors increasingly use the market for liquidity, portfolio management, and exposure optimisation. 

• Global private equity AUM has expanded from roughly $1tn in the early 2000s to nearly $10tn today, driving demand for secondary liquidity.
• The secondaries market grew by more than 40% in 2025, reaching roughly $230–240bn in volume.
• GP-led continuation vehicles are increasingly viewed as a “fourth exit route”, allowing sponsors to retain trophy assets while offering investor liquidity.
• Deals above $1bn rose 57% YoY, highlighting growing institutional confidence and capital depth.

Private markets were built around illiquidity. The rise of secondaries increasingly suggests investors now want flexibility without abandoning the asset class itself.