Credit secondaries ranked second only to private equity in deal volume across both LP-led and GP-led transactions in 2025. The asset class continues to attract significant capital as investors seek liquidity and portfolio rebalancing opportunities in a challenging market environment.

This momentum builds on a strong 2024, where credit secondaries gained traction as traditional exit routes for private credit portfolios narrowed. The surge reflects growing institutional appetite for discounted exposure to senior loans and mezzanine debt, offering a potential hedge against higher interest rates and economic uncertainty.

Market participants expect the trend to continue as more private credit funds reach maturity and seek secondary solutions. The activity provides crucial liquidity for limited partners while allowing new investors to enter the space at attractive valuations, reshaping the secondary market landscape.