Private Equity Secondary Transactions And Jersey Specific Issues

Private equity (PE) secondary transactions have grown significantly in recent years, driven by increasing liquidity needs among investors triggered by geopolitical uncertainties, public market volatility significant declines in M&A activity and in general slower exit environment. The secondary market allows investors to buy and sell existing stakes in private equity funds, providing liquidity and portfolio management flexibility.

According to the data provided by Private Equity International as derived from Evercore's FY 2024 Secondary Market Review, the secondaries transaction volume hit $160 billion in 2024 with GP-led and LP-led deals distributed roughly evenly in terms of the transaction volumes. This represents an increase of circa 40% when compared with 2023 and an increase of almost 220% when compared to 2020.