Secondary deal activity in private markets surged in the first half of 2025, with transaction volume climbing to an estimated $102.23B, a 51% increase from $67.71B in the same period last year, according to a new survey by Setter Capital.
It found the projected full-year 2025 volume stands at $176.25B, based on FY 2024 trends. Fund secondaries led the way, rising 56.3% year-over-year to $59.49B, while direct secondaries increased 44.1% to $42.74B. Respondents projected the market would maintain a near-even split over the next three years, with 55.7% in fund secondaries and 44.3% in directs.
Non-credit private equity transactions posted the sharpest growth, jumping 64.3% compared with the first half of 2024. Other sectors also saw gains, including hedge funds (up 21.3%), infrastructure (10.4%), and real estate (13.4%). Agriculture and timber strategies recorded a dramatic 268.1% increase, albeit from a smaller base.
Among fund strategies, leveraged buyout funds dominated with $48.52B in purchases, up 70% from a year earlier. Venture capital funds saw a modest 7% increase to $2.84B, while credit funds rose 6.9% to $2.11B. Energy-focused funds more than doubled, climbing 195.6% to $315M.
Real estate activity was mixed; however, core strategies doubled to $506M, while value-add and opportunistic funds declined 16.8% and 42.0%, respectively.
The survey also noted funds purchased in the secondary market were slightly more mature, with an average age of 6.76 years compared with 6.39 years in the first half of 2024. Purchases spanned both portfolio transactions and single-line interests across vintages.
The increase in secondary market transactions underscores robust investor demand for liquidity solutions in private markets, as sellers continue to look for ways to rebalance portfolios and buyers target discounted opportunities to pick up established funds.
