GP-led transaction volume reached a record $115 billion in 2025, up more than 50 percent year-over-year, according to Jefferies' latest Global Secondary Market Review. This explosive growth reflects private equity firms' continued use of continuation vehicles to extend hold periods on select assets while offering limited partners liquidity options. The market has evolved beyond traditional closed-end secondaries funds.

A significant driver of this expansion is the growing participation of evergreen funds, which are increasingly deploying capital into continuation vehicles. Jefferies reports that evergreen inflows reached an estimated $113 billion in 2025, with over 40 percent allocated to secondaries. These vehicles offer GPs faster deployment compared to traditional drawdown funds, with continuation vehicles showing little or no J-curve and sometimes immediate mark-ups.

The convergence of these two trends raises important questions about liquidity management and potential conflicts of interest. While evergreen funds typically provide periodic liquidity, GP-led investments are inherently illiquid assets. Industry experts suggest careful portfolio construction—balancing GP-led exposure with LP-led secondaries and other shorter-duration investments—can mitigate these risks. As one market participant noted, the key is building diversification while managing the inherent tension between evergreen liquidity promises and GP-led illiquidity.