Private equity secondaries are experiencing significant growth as limited partners adopt more sophisticated portfolio management strategies, according to Dawson Partners managing partner Yann Robard. Speaking at PEI's NEXUS 2026 conference, Robard noted that LPs are increasingly taking an active approach to reallocating and rebalancing their private equity investments, mirroring tactics long used in public markets.

This shift in LP behavior is becoming a major driver of secondary market expansion. Robard emphasized that as investors become more thoughtful about portfolio management, they're creating more opportunities for secondary transactions. The market is also seeing increased specialization, with funds focusing on structured secondaries like preferred equity and NAV lending, while the GP stakes universe continues to evolve.

Despite recent hype around GP-led deals, Robard clarified that these transactions represent only about 15 percent of exits, not the 90 percent market noise might suggest. Looking ahead, continuation vehicles are expected to account for 10-20 percent of private markets exits, with roughly one in 10 companies moving into new funds for extended holds. This evolution is expanding the definition of what constitutes a secondary transaction, raising questions about how the market will be measured and defined in the future.