Market volatility, an evolving investor base, rapid technological change and a persistent liquidity crunch are making secondaries increasingly attractive in private equity, according to Pomona Capital CEO Michael Granoff. The current environment presents a compelling case for secondary transactions as traditional exit routes remain constrained.

Recent market uncertainty and escalating geopolitical tensions have raised broader concerns for PE investors. Granoff acknowledges this is a time of profound challenges, noting that private equity cannot claim to deliver absolute returns completely uncorrelated to public market movements or commodity prices.

The combination of structural market pressures and macro-level instability is reshaping how investors approach private equity allocations. Secondaries offer a way to navigate these challenges by providing liquidity and portfolio management flexibility in an otherwise locked-up market.