LP Appetite Grows for Private Credit, Secondaries and Evergreen Funds — Evening Brief – 06.25.25
Limited partners are increasingly leaning into secondaries as portfolio management priorities shift in response to heightened market volatility, according to Coller Capital’s latest Global Private Capital Barometer. The survey of 110 private capital investors — representing $2 trillion in combined AUM — highlights accelerating LP demand for secondaries transactions across multiple asset classes.
LP intent to increase secondaries allocations continues to build with 37% of LPs expecting to grow their secondaries exposure over the next 12 months, up from 29% in the December 2024 survey. Transaction volumes remain robust, with global secondaries activity reaching $160 billion in 2024, suggesting a durable bid for liquidity solutions despite lingering macro headwinds.
Continuation vehicle (CV) performance remains in line with investor expectations. Among LPs with existing exposure to GP-led transactions, 47% report that single-asset CVs have met or exceeded expectations, while 36% report the same for multi-asset CVs. The data underscores LP willingness to support continuation processes, provided deal quality and sponsor alignment remain strong.
Beyond GP-led processes, LPs remain highly engaged as both buyers and sellers in the LP-led segment. Over half (54%) of respondents expect to engage in LP-led secondaries over the next two years. Interest in real assets secondaries continues to build (25% of LPs plan participation) while private credit secondaries, though still emerging, are attracting growing attention (19% of LPs express interest).
While secondaries activity strengthens, LP enthusiasm for fresh private equity primary commitments shows modest cooling as 28% of LPs expect to increase PE allocations, down from 34% six months ago, though only 10% plan to reduce PE exposure — suggesting a recalibration rather than broad retreat from the asset class.
The continued rise in secondaries reflects a pragmatic shift by LPs seeking liquidity options, vintage diversification, and the ability to rebalance private market exposures amid geopolitical uncertainty, compressed distributions, and more selective fundraising environments.