The private equity secondaries market experienced unprecedented activity in 2024, with LP-led deal volume reaching approximately $120 billion as institutions rushed to generate liquidity. A persistent "distribution desert" in traditional exit channels drove a surge of first-time LP sellers into the market, according to advisory firm estimates.

Institutions of all types participated in the secondaries boom, seeking alternatives to a challenged traditional fundraising environment. The record transaction volume kept market participants extremely busy throughout the year, as the lack of IPOs and strategic buyer activity left many limited partners searching for ways to unlock capital from their existing commitments.

The surge in secondaries activity represents a fundamental shift in how limited partners manage their private market portfolios. With traditional exit routes remaining constrained, the secondaries market has become an essential tool for rebalancing and generating returns, changing how institutions approach their private equity allocations.