Private markets secondaries are entering a new phase of growth, with volumes expected to exceed $225 billion in 2026, driven by both near-term liquidity constraints and longer-term structural shifts across asset classes. 

Houlihan Lokey’s latest LP Compass Secondary Investor Survey highlights that slow distributions (81%) and a muted M&A environment (71%) remain the primary catalysts for activity. At the same time, 69% of respondents pointed to the expansion of non-buyout strategies, including infrastructure and private credit, as a key driver of future growth. 

The report underscores a broader evolution in the market. According to Matt Swain, managing director and global co-head of equity capital solutions at Houlihan Lokey, while reduced distributions have provided a temporary boost to volumes, the more durable trend is the broadening of secondaries beyond traditional buyouts, alongside new capital inflows from institutional and increasingly retail investors. 

Buyout strategies still dominate, drawing 86% of investor interest, followed by growth (47%) and private credit (24%). Regionally, the U.S. and Europe remain the most favored markets, while Asia continues to attract more selective participation. 

Pricing expectations remain constructive, with 96% of respondents anticipating stable or higher pricing across both LP-led and GP-led transactions. 

Swain also emphasized that GP-led secondaries are emerging as the fastest-growing segment, now approaching half of total market volume after being a niche strategy a decade ago, with strong investor support reflecting their expanding role in portfolio management.