According to a report by Campbell Lutyens, LP-led secondary volume witnessed a substantial 54% year-on-year surge in 2025, reaching $121 billion. This growth reflects increased trading activity by Limited Partners (LPs) across a diverse range of fund qualities. LPs were also more willing to accept larger discounts on their investments during the period.

The rise in secondary market activity suggests a shift in how LPs manage their portfolios. As the private equity market matures, investors are increasingly using secondaries to rebalance their holdings, generate liquidity, and adjust to changing market conditions. This trend has been further fueled by the need for LPs to optimize returns.

This increased volume indicates a robust and active secondary market. The willingness of LPs to trade a wider range of fund qualities and accept discounts signals a more sophisticated understanding of valuation and risk. It's a sign of a healthy market, providing liquidity and options for investors.

Looking ahead, market participants will be watching for the impact of any economic slowdown. Continued growth in LP-led secondaries would underscore the market's resilience, while any contraction could signal broader concerns. The trend of LPs actively managing their portfolios is expected to continue.