"Private equity liquidity has become a more active topic as we enter 2026, reflecting investors' close attention to cash flows, distributions, and portfolio construction. One clear signal is the pace of secondaries growth as their volumes continue to increase. Volumes reached USD 226 billion in 2025, a 41% increase compared to the previous year. The market tends to rely on two main structures, depending on the type of liquidity required. LP secondaries are the simplest structure."
"A limited partner sells an existing fund interest to a buyer. At a high level, the pricing is commonly negotiated around reported net asset value (NAV). Outcomes are typically shaped by the buyer's view of underlying assets and the seller's timing. As a result, discounts can appear when liquidity is the priority, and buyers are selective. Continuation vehicles are different as a General partner (GP) selects assets from an existing fund and transfers them into a new affiliated vehicle."
Private equity liquidity has become a focal point entering 2026 as investors monitor cash flows, distributions, and portfolio construction. Secondaries volumes rose to USD 226 billion in 2025, a 41% year-over-year increase, signaling stronger market activity. The market relies mainly on LP secondaries—where a limited partner sells a fund interest typically priced around reported NAV—and continuation vehicles, where a GP transfers selected assets into a new affiliated vehicle and offers existing investors to sell or roll. Continuations accounted for roughly 20% of private equity sales in 2025. Governance and conflicts management, including LPAC review per ILPA guidance, are central to fair execution.
Read at London Business News | Londonlovesbusiness.com
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