The booming secondary market for private equity fund stakes is becoming increasingly concentrated, according to Capital Dynamics, a secondary fund manager. The value of secondary transactions worldwide totaled $226 billion last year, up 41% from 2024, with the market's 10 largest investors accounting for half of last year's total, the firm says. "As markets scale, capital concentrates," Managing Director Mauro Pfister says in a market note. "The buyer universe has expanded, deal sizes have grown, and pricing at the top of the market has tightened accordingly." Pfister notes that only 2% of more than $13 trillion in assets held in private-equity funds change hands annually in the secondary market, giving it plenty of room to grow further. "Looking ahead, structural tailwinds remain powerful," he says.
To read the full article, please click here.