Will Momentum In GP-Led Secondaries Continue In 2024?

The second half of 2023 saw increased momentum for GP-led secondary deals, with outsized acceleration in the space making up for a relatively slow period to start the year compared to 2021 and 2022.

For H2 2023, transaction volume in global GP-led markets climbed 88% compared to the first half of the year, according to Jefferies, with $34 billion of the total $52 billion in deal volume (approximately 65%) estimated to have resulted from transactions closed in the second half of 2023.

This $52 billion in total GP-led secondaries volume in 2023 is estimated to have come from $46 billion in asset sales (i.e., continuation funds and tender offers) and $6 billion in structured equity and fund finance deals. Notably, approximately 75% of GP-led deals in 2023 were in the buyout space, signaling substantial room to run in the use of these deals in other core strategies like venture, real estate and credit¹.