Private securities secondaries crossed $110 billion in global volume during 2025, a 24% increase from the $89 billion recorded in 2024, according to market research published by HarbourVest Partners. The gain arrives as primary exit windows remain narrow and family offices begin signaling rotation away from long-dated fund commitments.

The volume surge reflects two converging pressures. Distribution waterfalls have slowed across vintage years 2018 through 2021, leaving limited partners holding illiquid stakes in funds that were supposed to return capital by now. Meanwhile, portfolio companies remain private longer—median time to exit now exceeds seven years for U.S. buyout-backed assets, compared to five years a decade ago. Secondaries provide the only liquid exit for LPs unwilling to wait another fund cycle. HarbourVest's figures capture both LP-led portfolio sales and GP-led continuation vehicles, the latter accounting for roughly 60% of total volume based on prior-year breakdowns.

The timing matters because it follows two other signals released this week. UBS reported that nearly one-third of its billionaire clients—87 individuals commanding ten-figure net worths—plan to reduce private equity commitments over the next twelve months. Separately, a wave of family-office capital is flowing into co-investment structures and direct buyouts, bypassing traditional fund vehicles entirely. That creates a supply-demand imbalance: more LPs seeking secondary exits, fewer institutional buyers willing to price illiquid vintage portfolios at par. The 24% year-on-year jump in secondaries volume suggests pricing has adjusted enough to clear the market, though specific discounts remain opaque outside of proprietary dealer networks.

For allocators, the secondary market is no longer a niche liquidity release valve. It is becoming the primary mechanism for portfolio rebalancing when IPO windows stay shut and strategic M&A remains selective. India's NBFC sector, for example, is entering a private-equity-driven exit cycle as smaller lenders face funding pressure and consolidation accelerates ahead of public listings. That pattern—PE funds selling portfolio stakes to other PE funds or secondaries buyers rather than taking companies public—now characterizes most middle-market exits globally. The $110 billion figure does not yet reflect transactions currently in diligence, meaning 2026 could see similar or higher volume if interest rates stabilize and buyers gain confidence in mark-to-market valuations.

Operators should track continuation fund terms over the next six months, particularly whether GPs are offering existing LPs meaningful roll-over economics or structuring deals to favor incoming capital. Pricing tension between sellers and buyers will show up in deal completion rates, not headline volume. If secondaries activity stays elevated while primary fundraising remains subdued—2025 saw a 15% decline in new commitments across U.S. buyout funds—then the market is repricing risk, not expanding.

The $110 billion crossed in 2025 is now the second-highest annual total on record, trailing only the $134 billion transacted in 2021 during the zero-rate liquidity peak. The difference is that 2021 volume was driven by opportunistic sellers taking profits early. This cycle, volume is driven by LPs who need liquidity and have run out of patience waiting for distributions.