GP-Led Secondaries Surge as Alternative Exit Strategy, Expected to Hit $105B by 2028
- Editor
- Jan 20
- 2 min read
What's New
According to a Pitchbook analyst note, GP-led secondary exit value has more than doubled over the past five years, with transaction counts surging from 16 deals in 2020 to 89 in 2024. The market is on track for a record year, projected to finish 2024 with exit values between $50 billion and $60 billion.
Why It Matters This dramatic growth represents a fundamental shift in private equity exit strategies, as GPs increasingly use continuation vehicles to maintain control of prized assets while providing liquidity to existing investors amid challenging traditional exit conditions.
Big Picture Drivers
Market Conditions: Falling valuations and higher borrowing costs have made traditional exits less attractive
Structure Innovation: Better guidelines from ILPA have helped align interests between all parties
Asset Quality: GP-leds typically involve "crown jewel" assets with average deal sizes of $838M vs $699M for standard PE exits
Regional Dominance: North America leads with 53.8% of global GP-led secondary value, followed by Europe at 37.7%
By The Numbers
89: Number of GP-led secondary transactions in 2024 YTD
$47.3B: Total GP-led secondary exit value in 2024
7.1%: Share of total PE exit value from GP-led secondaries in 2024
32.2%: Portion of GP-led deals in B2B sector, the largest segment
50%: Companies held for 5-7 years before GP-led transaction
Key Trends to Watch
The secondary market is projected to grow to $700B by 2028, with GP-leds potentially reaching $105B under a bull case scenario. The IT sector is seeing increased activity, with a record 20 exits YTD in 2024. Specialized secondary funds are emerging from firms like Ardian and Blackstone, indicating long-term institutional commitment. Deal sizes are expected to increase as valuations improve and megafunds provide more capital.
The Wrap
GP-led secondaries have evolved from a niche liquidity solution to a mainstream exit strategy, offering GPs flexibility to maintain ownership of quality assets while providing LP optionality. With projected growth rates between 5.8% and 13.2% CAGR through 2028, the market is positioned to become an increasingly important component of private equity exits.
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