Secondaries volume surged to $226 billion in 2025, smashing predictions, according to Evercore. The market's growth is fueled by a need for liquidity, with funds seeking exits and investors rebalancing portfolios. This record activity signals a maturing market for private equity transactions.

While fundraising has skyrocketed, available dry powder has remained 'fairly flat,' notes Evercore's Nigel Dawn. This creates a capital gap, as the market requires more funding to keep pace with soaring demand. The imbalance could pressure fund managers and alter deal dynamics.

Investors and fund managers must now navigate this supply-demand mismatch. The sustained volume indicates continued exit pressure from aging private equity portfolios. Watch for how limited partners and sponsors adapt their strategies to secure capital for future secondary transactions.