Houlihan Lokey’s latest secondary‑market study shows price‑to‑value (CV) spreads edging higher as fresh buyside capital piles into private‑equity secondaries. Buyers are demanding tighter asset selection, pushing a larger share of deals out of the low‑end pricing band. The shift reflects stronger fundraising pipelines and a willingness to pay premiums for higher‑quality portfolios, such as seasoned‑vintage funds and niche strategy vehicles, further intensifying competition.

The report shows bottom‑quartile transactions fell to single‑digit percentages, while mid‑range and top‑quartile CVs rose about 15%. This pressure benefits sellers who can prove strong cash‑flow histories, but forces intermediaries to tighten due diligence and justify higher fees. Advisors are revising valuation models to reflect tighter spreads and heightened buyer scrutiny. These changes aim to preserve confidence as quality commands premiums.

Investors eyeing secondary exposure must recalibrate return expectations, as the upward CV trend narrows the spread between purchase price and eventual exit value. Firms that can source high‑quality assets are likely to see improved IRRs, while those chasing volume may face compressed margins. The market’s price trajectory now hinges on the pace of new capital inflows.