Privateโ Credit Secondaries Market Surges, Expected to Nearly Double in โฃTransaction Volume
New York – Investor appetite for private credit secondaries is driving rapid growth in the market,โ with transaction volume poised to nearly double from $11 billion in โค2024 to a projected $15-20 billion in 2025, according to industry experts. This surge reflects a broader trend โขof liquidity seeking in the private credit space, even for relatively young portfolios traditionally held โfor five years or longer.
the rising demand is evidenced by recent high-profile deals, including coller Capital’s recent close of a $6.8โค billion second private credit secondaries vehicle and Antares Management currently fundraising for it’s debut fund. Carlyleโค AlpInvest led a $550 million GP-led continuation fund for AEA Private debt in late October, further demonstrating the momentum. This activity signals a shift in strategy, allowing limited partners (LPs) and generalโ partnersโข (GPs) to crystallize โinternal โrates of return (IRRs) and access liquidity whenโ needed.
“When it comes to private credit โคsecondaries you can definitely make the argument that the growth of โขthis market raises some red flags because โthese are supposed to be five year assets plus one – your not executing these transactions to get additional โupside,” โexplains Joe Weisglass, managing director at Configure Partners. “But what we’re seeing come โฃtoโ market are relatively young portfolios and there’s a broader realisation among LPs and GPs that you can crystallise IRRs and get that liquidity when you need it.I think that’s driving some of the growthโค that we’re seeing right now. Everyone is focused on liquidity.”
Despite the growth,the private credit secondaries market remains small,representing less than one percent of โtotalโ private credit volume. Alexandra Zeizel, a partner at law firm Proskauer, notes the important potentialโข for expansion, drawing parallels โto the growth trajectory of traditional private equity secondaries.