Consistently high secondaries transaction volumes are being driven by enduring macro difficulties and opportunistic investment practices, say P Thao Le and Stephanie Pindyck-Costantino, partners at Troutman Pepper Locke. What's fuelling the high volume of secondaries transactions the market has been seeing? Investors - whether institutional LPs, family offices or high-net-worth individuals - are increasingly rebalancing their overall portfolios by divesting private fund stakes, leading to a sustained high volume of LP-led secondaries. Stephanie Pindyck-Costantino: Secondary market activity remains robust, with secondary funds and direct secondary purchases continuing to gain traction as efficient exit routes.

The firm notes that secondary transactions are increasingly being used to navigate market volatility and liquidity constraints. This strategic shift underscores the growing importance of secondary markets in the current investment landscape. The article is sponsored by Troutman Pepper Locke.