Navigating private equity鈥檚 secondary market is no longer about staying afloat鈥攊t鈥檚 about mastering the tides. The secondaries market has grown at an unprecedented pace, smashing records and redefining the private equity landscape. But with growth comes complexity, challenges and the need for forward-thinking strategies.
To dig deeper, read the full "Secondaries in 2025: Insights for Private Equity Leaders" report.
Where Data Meets Opportunity
Data management is at the heart of the secondaries market, but significant progress is still needed to streamline processes, improve transparency and efficiency.
- 81% of managers believe there鈥檚 room for improvement in secondaries data management at their firms.
- 43% describe it as a work in progress.
- 25% admit it鈥檚 in its early stages, and
- 13% consider their data disparate across systems.
Quality data isn鈥檛 just about better organization鈥攊t鈥檚 the key to unlocking new opportunities and staying ahead in a competitive market. Firms that prioritize improving their data frameworks position themselves for stronger decision-making, greater efficiency, and enhanced adaptability. In today鈥檚 fast-paced landscape, robust data systems are no longer optional鈥攖hey are the driving force behind smarter investment decisions and sustained growth. For managers, the question has shifted from "Should we improve?" to "How quickly can we adapt and implement these changes to gain the edge we need?"
The Role of AI in Secondaries
Artificial intelligence continues to garner attention for its potential to revolutionize processes, yet its adoption in secondaries remains limited. In fact, 54% of managers report that AI plays no role in their firm鈥檚 secondaries operations, while only 5% say AI is integral to their processes.
Why the slow uptake? Our report identifies three major blockers:
- Poor data quality/availability (28%) 鈥� Without clean, centralized data, AI can't yield impactful insights.
- Lack of adoption (21%) 鈥� Cultural and resource barriers hinder integration.
- Unavailability of relevant tools (20%) 鈥� Many firms still lack access to AI solutions tailored for their exact needs.
Despite these challenges, the future of AI in private equity is undeniable. Early adopters who address these hurdles鈥攕tarting with structured data鈥攕tand to shape more efficient, informed and responsive operations.
Secondary vs. Primary 91视频: Closing the Sophistication Gap
The structural sophistication of the private equity secondary market is still catching up to the primary market鈥攁t least according to 45% of managers surveyed.
Growth on the Horizon
The secondaries market shows no signs of slowing down. Some estimates suggest secondary transactions hit $162 billion in 2024, surpassing the 2021 record by a remarkable 23%.
What鈥檚 driving this surge? The report raises compelling questions:
- Will the resurgent IPO market present an alluring exit alternative for investors?
- How will these trends disrupt the drivers of growth in the secondaries space?
Understanding these market dynamics will be crucial for firms that aim to remain competitive and resilient amid rapid sector shifts.
Overcoming Barriers to Progress
While growth is promising, it鈥檚 accompanied by barriers holding firms back. These include data limitations, technology adoption challenges and gaps in market structure development.
To overcome these obstacles, the most proactive firms are focusing on:
- Data quality improvement initiatives.
- Technology partnerships that amplify operational efficiency.
- Collaborative strategies that bring together stakeholders across the value chain.
The Future of Secondaries in Private Equity
The untapped potential of private equity's secondary market requires thoughtful navigation. Managers who prioritize data management, explore AI-enabled efficiencies and address structural gaps will lead the charge in shaping the next era of secondaries.
To explore these findings in-depth and prepare your firm for what鈥檚 next, download the "Secondaries in 2025: Insights for Private Equity Leaders" report.
