Private investment funds aimed at individual investors have become the fastest-growing source of capital in the $240bn private secondaries market, according to a report by Bloomberg citing Jefferies Financial Group.
Secondaries accounted for around 40% of the $113bn raised by evergreen funds, which offer periodic liquidity and are designed for retail investors and smaller institutions rather than large allocators such as pensions or sovereign wealth funds.
Overall secondaries volumes rose 48% year-on-year to reach a record level in 2025, as higher interest rates slowed fundraising and deal activity across private markets. At the same time, asset managers have accelerated efforts to access retail capital as some institutional investors pull back from new private equity commitments.
Jefferies said the fair market value of secondaries held in retail-focused funds has almost tripled since 2023, with seven of the 10 largest secondaries buyers now investing through evergreens alongside closed-end funds. In 2025, limited partner-led transactions represented 52% of total secondaries activity, driven by investors seeking liquidity, diversification and relief from private equity overallocation.
