Private markets have historically rewarded long-term investors, but extended fund lives and slower distributions are reshaping how capital is deployed. For ultra-high-net-worth investors, secondary strategies have become a core component of private market investing. By purchasing existing fund interests, investors can access mature, diversified portfolios and potential valuation advantages while maintaining exposure to institutional-quality assets. 

Once viewed primarily as a liquidity outlet, secondaries are now recognized as a distinct investment strategy that combines efficiency, diversification, and disciplined entry into seasoned private portfolios. 

Why Secondaries Matter Now 

The combination of slower realizations and a record supply of private assets has expanded opportunity in the secondary market. Global secondary transaction volume exceeded $180 billion in 2024, reflecting growing institutional participation and an increasing preference for efficient, shorter-duration exposures.¹ 

Investors are using secondaries to achieve objectives that include: 

• Accelerating deployment into portfolios that are already producing cash flow. 

• Gaining exposure to established managers and companies at potential discounts to reported net asset value. 

• Reducing blind-pool risk through investments in identified, cash-flow-generating assets. 

• Enhancing diversification across vintages, sectors, and strategies. 

Market analysts report that extended fund maturities have increased demand for seasoned private market exposure, creating favorable pricing conditions for secondary buyers.² 

Bridging Strategies Across Private Markets 

Secondaries also serve as a bridge between private equity and private credit allocations. Purchasing secondary interests in private credit funds can provide immediate income-generating exposure to portfolios of seasoned loans. Conversely, secondary investments in private equity can complement these allocations with growth-oriented assets that offer long-term appreciation potential. 

Although the secondary market has grown rapidly in recent years, it still represents a small portion of overall private market commitments, leaving significant room for expansion as institutional investors continue to seek diversified, shorter-duration exposures.³ 

The ability to balance income and appreciation across secondary opportunities allows investors to tailor private market exposure in line with long-term objectives while maintaining flexibility through different market cycles. 

IEQ Capital’s Perspective 

At IEQ, we view secondary investing as a strategic complement to primary and co-investment programs. By allocating to experienced managers across LP-led and GP-led transactions, investors can access diversified portfolios backed by leading sponsors and high-quality underlying assets. 

Disciplined participation in secondary strategies may improve pacing efficiency, smooth cash flow profiles, and provide entry into institutional-quality investments at attractive valuations. For qualified investors, secondaries represent an important component of long-term portfolio construction and private market access. 

We invite you to connect with your IEQ advisor to discuss how secondary strategies may align with your investment objectives. 

1. Bloomberg Intelligence, “Global Private Markets Outlook,” December 2024. 
2. Barclays Research, “Private Equity Secondaries: Market Update,” February 2025. 
3. FactSet, “Global Private Capital Flow and Secondary Market Participation,” October 2024. 

For qualified investors only. This material is provided for informational purposes and does not constitute an offer to sell or the solicitation of an offer to buy any securities or investment products. Past performance is not indicative of future results. Investing in private markets involves risks, including the potential loss of principal. Any investment decision should be made in consultation with professional advisers.  

Risks associated with secondary investments include several key considerations. Macroeconomic factors such as interest rates, inflation, and overall economic growth can lead to materially different outcomes for the sector, particularly when they affect corporate earnings. Portfolios may contain some liquid securities, which can be more volatile than traditional private investments. Strategies that emphasize GP-led transactions may introduce higher concentration risk compared with more diversified secondary funds. Liquidity risk is also significant, as exit opportunities often depend on broader capital market conditions and investor demand, both of which can fluctuate throughout the economic cycle.