The rise of continuation funds
secondary transactions have grown significantly providing liquidity to long-term illiquid asset classes. Indeed, despite private fund-raising contraction, across the private market, secondaries fundraising almost doubled in 2023. In 2024, it is expected that the global secondary private market will reach approximately 140 billion dollars in size.
Bargains expected in secondary private markets
The number of private equity portfolios in the secondary market is increasing as both fund managers and investors in private equity funds seek liquidity opportunities.
In its private markets outlook, BlackRock focuses on private equity, private debt, infrastructure and real estate. “Given the long lead time between the decision to sell a private equity asset and the sale, we expect more of these opportunities in 2023.”