Private Credit Secondaries Surge as Investors Seek Liquidity

October 13, 2025

Private-credit secondary transactions are accelerating as investors look for liquidity in a slower exit environment. Secondary deal volume topped $12 billion in 2024 and is expected to surpass $14 billion this year, driven by a combination of tighter capital markets and limited refinancing options.

As traditional exits like IPOs and M&A remain subdued, limited partners are increasingly turning to the secondary market to rebalance portfolios or free capital for new allocations. General partners are also using continuation funds and recapitalizations to extend fund lives and provide partial liquidity to investors.

Secondary buyers, including firms such as Coller Capital and Pantheon, have raised multibillion-dollar funds dedicated to private credit deals. The growth reflects a broader institutional acceptance of the asset class, though valuation methods and deal structures are still evolving.

Unlike private equity portfolios, credit funds typically hold dozens of individual loans, offering diversification but adding complexity to pricing and risk assessment. Analysts note that while the expansion provides near-term liquidity, it may also test underwriting standards if credit conditions tighten further.

The rise of private-credit secondaries underscores a market in transition—balancing the need for liquidity with the realities of higher rates and prolonged uncertainty across private markets.