BREAKINGVIEWS-Second-hand buyouts risk a bit too much excitement

The private-equity secondary market, valued at $200 billion, is evolving with innovative structures attracting less-experienced investors. Secondary transactions are projected to rise from 0.9% to 1.4% of assets under management by 2025, with LP-led deals reaching $54 billion in the first half of 2025. GPs are increasingly engaging in continuation vehicles to manage assets, while new financial structures like preferred equity are emerging. However, the influx of new investors poses risks, as they may end up with underperforming assets.