The secondary market extended its record trajectory in the first half of 2026, generating an estimated $124 billion in transacted volume, up approximately 28% year-over-year and a new first-half record. Trailing-twelve-month volume through June 2026 reached approximately $260 billion, double the market's 2021 level. GP-led deals reached $61 billion while LP-led transactions hit $63 billion in 1H 2026, with both segments reaching new highs.
Sponsors and limited partners remained motivated to create incremental liquidity even as M&A volume surpassed its 2021 peak and IPO issuance rebounded sharply. The M&A recovery, however, has been concentrated in large strategic transactions, while sponsor-led M&A has yet to fully rebound, leaving traditional exit channels selective for private equity. This is evidence that secondaries have become a structurally growing source of liquidity and portfolio management for sponsors and limited partners alike. Continued fundraising momentum has increased deployable capital and helped sustain strong pricing across the market, with 76% of surveyed investors raising flagship funds, 40% managing evergreen or ’40 Act vehicles, and $77 billion of dry powder earmarked for second-half GP-led deployment alone, more than the entire first-half GP-led market. While adjustments in software valuations and geopolitical uncertainty tempered second-quarter activity, we expect growth to accelerate and volume to meet our full-year prediction of $275 billion.
