The secondaries market is exploring new structures to unlock capital for impact investors facing liquidity constraints. A secondaries buyer at New Private Markets' Investor Summit in New York noted that many impact managers are emerging from the emerging fund category but struggling with lower distributions due to current market headwinds.

Despite these challenges, limited partners remain committed to impact investing, though they have limited capital to redeploy. The venture- and growth-heavy impact market currently sees significant discounts in secondaries transactions, with venture at 28 percent of net asset value and growth at 21.4 percent in H1 2025, according to Campbell Lutyens. This creates a need for alternative solutions.

Industry participants are discussing NAV loan-like structures, preferred equity, and other creative financing to free up capital from existing investments that may take longer to monetize. The debate around continuation vehicles continues, with some viewing them as essential tools while others question their suitability for early-stage impact companies. The secondaries market must evolve to meet the unique needs of impact investors while addressing the extended timelines required in this sector.