Buyouts remain the top strategy for secondaries investors, with nearly half of respondents in Secondaries Investor’s Global Market Survey 2026 naming them the best path to generate alpha over the next few years. Conducted with Goodwin, the survey highlights a clear preference for buyout transactions amid a competitive secondaries landscape. Capital efficiency and stable cash flow generation are driving this trend, as investors seek lower entry costs compared to other secondaries strategies.

Regulatory scrutiny is intensifying around secondaries deals, particularly for leveraged buyouts. Governments are pushing for greater transparency in private equity transactions, which could reshape deal structures. Despite this, market growth projections remain strong, fueled by institutional demand for alternative assets. The survey notes a shift toward specialized secondaries vehicles that balance risk and return in volatile markets.

While buyouts dominate investor sentiment, the sector faces challenges. Competition from direct private equity and growth equity strategies is increasing, pressuring secondaries managers to innovate. The survey emphasizes that market impact hinges on adapting to regulatory changes while maintaining liquidity. Firms that integrate ESG criteria into buyout portfolios may gain an edge as compliance becomes non-negotiable.

Key takeaway: The secondaries market’s future hinges on balancing innovation with compliance. Buyouts’ current dominance reflects investor confidence in their proven returns, but long-term success will require navigating tightening regulations and diversifying strategies beyond traditional models.