Private Credit Secondaries Market Surges, Expected to Nearly Double in Transaction Volume
New York – Investor appetite for private credit secondaries is driving rapid growth in the market, with transaction volume poised to nearly double from $11 billion in 2024 to a projected $15-20 billion in 2025, according to industry experts. This surge reflects a broader trend of liquidity seeking in the private credit space, even for relatively young portfolios traditionally held for five years or longer.
the rising demand is evidenced by recent high-profile deals, including coller Capital’s recent close of a $6.8 billion second private credit secondaries vehicle and Antares Management currently fundraising for it’s debut fund. Carlyle 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 general partners (GPs) to crystallize internal rates of return (IRRs) and access liquidity when needed.
“When it comes to private credit secondaries you can definitely make the argument that the growth of this market raises some red flags because these are supposed to be five year assets plus one – your not executing these transactions to get additional upside,” explains Joe Weisglass, managing director at Configure Partners. “But what we’re seeing come to 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 growth 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 total private credit volume. Alexandra Zeizel, a partner at law firm Proskauer, notes the important potential for expansion, drawing parallels to the growth trajectory of traditional private equity secondaries.
