August 28, 2025

The Future of Secondary Markets in 2025: Trends & Insights

A once-niche corner of investing is going mainstream — and in 2025, the private secondary market could be where innovation, liquidity, and opportunity collide.

by
Noel Moldvai

The secondary market had a record-breaking 2024

Investors sought out secondary transactions to enhance liquidity and rebalance portfolios. They were drawn to its efficient pricing in regulated public stock exchanges and access to private companies. 

Will the rapid expansion that dominated the last 12 months continue in 2025? Keep reading to discover how secondary markets will evolve in the year to come.

Accessibility and participation 

Opportunities in the secondary market — once viewed as a niche segment — are becoming accessible to more investors, a boon to individuals looking to diversify their portfolios. This has applied particularly to the private secondary market, which has historically been driven by institutional investors. That’s no longer the case. 

The rise of players like Augment, a digital platform where accredited individuals can buy and sell existing stakes in private companies or funds, has lowered the barriers to entry for a wider consumer base. Augment enables investors to purchase stock in private firms that may not be subject to the same market shocks as public ones, potentially providing unique protection to portfolios.  

A growing appetite for private investment contributed to secondary markets’ recent rapid growth, which is expected to continue in 2025. Underscoring that strength is a healthy flow of new venture deals, including some in the artificial intelligence sector. With unprecedented valuations ranging from $10 billion to $100-plus billion, 2025 will be an exciting time to be involved in the private secondary market.

The shift to private secondaries has coincided with a decline in traditional public equity investing, once considered the most straightforward way to access the secondary market. The result has been product innovation as asset managers seek out vehicles that meet the needs of individual investors across both savings and retirement pools. 

Market expansion 

Private secondary market deal volume was accelerating heading into 2025, a trend analysts expect to continue as the market expands. A few key shifts are making this growth possible. 

Secondary market volumes hit record highs

2024 saw global secondary transaction volume top $162 billion, marking one of the strongest years ever recorded. With increased institutional activity, greater platform access, and broader portfolio needs, analysts project 2025 to exceed $180 billion, with growth fueled by both LP-led transactions and newer GP-led deal structures. This acceleration is a result of pent-up demand, increased seller flexibility, and a more stable macroeconomic backdrop. In this climate, secondaries are becoming a go-to tool for both liquidity and tactical portfolio reshaping.

Secondary market deals are becoming increasingly innovative, resulting in more advanced deal structures that cater to specific investors who are using this segment for various reasons, such as rebalancing their portfolios. New asset classes are coming online, and technology could further transform the market by increasing transparency, reducing costs, and enhancing efficiency. 

The rise of GP-led secondaries and continuation funds

While traditional LP-led sales still dominate volume, GP-led transactions — especially single-asset continuation vehicles — have gained significant momentum in 2025. These structures allow fund managers to retain trophy assets while offering liquidity to legacy investors. They're also favored by investors looking for targeted exposure to high-performing companies with clear exit paths. As the strategy matures, investor scrutiny and demand for transparent terms are reshaping how these deals are underwritten.

One example is evergreen funds, which help investors make long-term investments in private companies. Offering more liquidity, evergreen funds are solving a key conundrum for high-net-worth investors, resulting in more than $350 billion in combined deal flow. 

If there’s one pressing challenge in the private secondary market, it’s the gap between buyers’ and sellers’ price expectations. This is common in dislocated markets, as each group becomes acclimated to different types of deals. Declining interest rates should reign in bid-ask spreads in 2025, creating more consistency in the secondary market. 

NAV discount compression & market repricing

In 2024, LP stakes traded at discounts of 10%–15% to NAV, driven by uncertainty, macro stress, and liquidity pressures. As confidence returns and interest rates stabilize, 2025 is showing signs of discount compression, especially in newer vintage funds and tech-aligned portfolios. Deal pricing has also become more transparent thanks to platforms like Augment that help calibrate buyer-seller expectations with real-time data, verified comparables, and vetted deal pipelines.

Innovative financing: NAV lending and structured liquidity

Another defining trend in 2025 is the increasing use of NAV-based lending structures to unlock value from secondary portfolios. Institutional investors are employing creative tools — including insurance-backed loans, cash flow sweeps, and deferred payment structures — to access capital while preserving exposure. As secondaries become more sophisticated, expect financing innovation to play a larger role in both portfolio construction and liquidity management.

Certainty amid chaos 

Investors are seeking flexibility in an investor environment filled with variables heading into 2025. With conflicts overseas and a new president in the Oval Office, the secondary market enables investors to sell or acquire positions as market conditions shift. 

For all these reasons, the secondary market is primed to follow up a strong 2024 with a year full of innovation and growth, making this an emerging area that’s ready to mature moving forward.

 

Important Disclosures: Investing in private securities involves substantial risk, including the potential loss of principal. Private securities are typically illiquid, have limited pricing transparency, and often require longer holding periods. These investments are available exclusively to qualified accredited investors and offer no guarantee of returns. Additionally, past performance of private securities does not indicate or predict future results.

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