The private equity secondaries market slowed in the first quarter as investors navigated heightened macro volatility and disruption from artificial intelligence, according to PJT Partners' Q1 2026 Secondary Market Insight. Transaction volumes reached approximately $40 billion, reflecting a pullback from the robust activity that characterized much of recent years.

The $40 billion total represents an 11% decline compared with the same period last year. Uncertainty around economic conditions and rapid technological change has made investors more cautious about committing capital to secondary transactions. Industry participants are urging restraint in evergreen fund marketing as limited partners become more selective about their allocations.

The market shift is creating openings for emerging managers, particularly in Canada where newer firms are gaining traction with institutional investors seeking fresh perspectives and more competitive fee structures. Established managers face greater scrutiny as LPs reassess their private equity portfolios in the current environment.