According to Greenhill, mosaic transactions saw an uptick in 2025, a period marked by heightened market volatility. This trend suggests a shift in the private equity secondary market. Buyers became more selective, focusing on LP-led deals and those involving GPs and funds they were most familiar with. This indicates a flight to quality during uncertain times.

This increased selectivity is a response to the broader economic climate. Rising interest rates and inflation often lead to decreased deal activity, pushing investors towards safer bets. The secondary market, where existing investors sell their stakes in private equity funds, provides an avenue for liquidity. Increased activity suggests this market is adapting to the challenges.

The focus on LP-led deals, where existing limited partners initiate the sale process, highlights a preference for established relationships and due diligence. As investors navigate the fluctuating market, this approach offers greater transparency and reduced risk. This trend is expected to continue as the economic outlook remains uncertain.

Looking ahead, the performance of these mosaic transactions will be closely watched. Success will depend on the underlying fund performance and the ability of buyers to accurately assess value in a volatile environment. Further analysis will reveal the long-term impact on the secondary market and private equity strategies.