Private markets are in the spotlight as investors seek to diversify beyond traditional securities. Recently, attention has turned to a lesser-known segment of these markets: secondaries. According to PitchBook data, global transaction volumes for secondaries hit a record $226 billion in 2025, up 41% from 2024.

“The secondaries world has expanded exponentially over the past three years,” said Montserrat Serra-Janer, global head of Private Markets Sales (Securities Services and Prime Finance Sales) at J.P. Morgan. “We’ve seen huge growth, and we’re also seeing increased interest in our secondaries intermediation capabilities from both clients and prospects.”

What exactly are secondaries, and will their popularity continue to surge?  

Why are secondaries growing in popularity?

Private markets are booming: assets under management (AUM) are projected to surpass $18 trillion by 2027, up from $10.8 trillion in 2022, according to S&P Global. Secondaries have grown as a natural consequence, enabling private market participants to rebalance their portfolios and unlock liquidity in a traditionally illiquid asset class.

This is especially important as LPs and GPs are increasingly looking to raise capital and return cash to investors. “For example, endowments in the U.S. are seeking more liquidity, and one way they can achieve that is to sell the GP stakes they previously invested in,” Serra-Janer explained. “Similarly, private equity firms need to realize their investments. Valuations have gone up, and investors want their money back.”

Muted IPO activity is also a contributing factor. Rising financing costs and wider bid-ask spreads are making traditional exits harder to execute, and the resulting bottleneck is prompting both investors and managers to create liquidity in the secondaries market. 

According to Serra-Janer, there are currently some 30,000 portfolio companies globally that are awaiting exit — an unprecedented backlog that collectively represents around $3.7 trillion in unrealized value. “Even in a great year, we might see a hundred IPOs, but we’re talking about a total of 30,000 companies,” she said. “The question is, what’s happening with the rest of them? Some good companies won’t be able to go public, and that’s why secondaries are so important.” 

Are there any risks associated with secondaries? 

As Serra-Janer highlighted, secondary transactions can be highly complex. There is a lack of transparency in the private markets, as key company information including financial statements is generally not publicly disclosed. In addition, deals are often priced based on historical data, which can lag market conditions.

This makes valuations inherently challenging. “If you want to enter the secondaries market, you need very good valuation tools and techniques, as you need to be sure of the intrinsic value of the company,” Serra-Janer said. “It’s also important to note that a discount doesn’t mean the company is cheap or doesn’t have intrinsic value. There’s a need to differentiate between selling at a discount versus selling at a loss.”

In addition, investor protection is still a gray area. “There’s a need for more regulation, especially as more retail investors get into this space,” Serra-Janer said. “People have to understand that private markets and secondaries are long-term investments. There’s a huge need to provide not just regulation, but also education.”

To help clients navigate these risks, J.P. Morgan offers a holistic ecosystem of solutions across the entire secondaries lifecycle. “At J.P. Morgan, we can provide the rebalancing  — that connecting clients with potential buyers and sellers,” Serra-Janer said. “Plus, from a liquidity perspective, we can provide leverage or financing.” Other end-to-end servicing solutions include block trading, fund administration, custody, private capital advisory and private markets research. 

“We have a unique ecosystem — wherever clients are in the secondaries lifecycle, we’re able to help them connect the dots,” Serra-Janer said.