The private markets secondary market reached a record $121 billion in the first half of 2026, as asset managers increasingly used continuation vehicles to retain ownership of high-conviction “trophy” assets, according to a report by Bloomberg citing date from Evercore.
Manager-led transactions accounted for 54% of secondary deal volume during the period, marking the first time in four years that such transactions exceeded those initiated by fund investors looking to sell their stakes.
Single-asset continuation funds were the dominant transaction type, Evercore said in its latest review of the market. These vehicles allow sponsors to transfer a prized or difficult-to-sell asset into a new fund, enabling existing investors to realise liquidity while giving the manager more time to own and grow the asset.
Although single-asset structures carry greater concentration risk, they can command higher pricing than continuation vehicles holding diversified portfolios, according to Evercore.
The secondary market is on course for another annual record after expanding for three consecutive years. Private equity represented around two-thirds of manager-led transaction volume in the first six months of 2026, followed by infrastructure at 16% and private credit at 11%.
The market has expanded sharply since interest rates began rising in mid-2022, when slower exit activity encouraged both fund managers and investors to seek alternative sources of liquidity.
However, Evercore said the growth of secondaries increasingly reflects a structural shift in private markets rather than simply a response to difficult exit conditions.
Continuation funds allow managers to maintain exposure to assets they believe still have significant value-creation potential, while secondary sales enable limited partners to rebalance portfolios or generate liquidity for new commitments.
The changing technology landscape is also influencing the composition of secondary transactions. Software-related continuation funds accounted for 10% of total volume in the first half of 2026, down from 18% a year earlier, as investors reassessed the long-term outlook for software companies facing potential disruption from artificial intelligence.
