secondary 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.

Secondary funds are gaining traction in Luxembourg’s private equity market. Unlike primary funds, secondary funds invest in assets that have mostly completed their investment periods. Their rising popularity suggests “there is some tension in the market as players search for liquidity or focus,” said Gregory Beltrame, partner at Arendt & Medernach.