H1 2024 Secondary Market Overview
We are very pleased to share our H1 2024 Secondary Market Overview, which provides insights on the dynamics, trends and factors that have shaped the asset class across the last six months.
The back end of 2023 saw positivity from our surveyed buyers and all signs pointed to the resurgence of the secondaries market in 2024. The first half of this year saw that optimism realised – bid-ask spreads narrowed and unlocked a long tail of pent-up transaction volume, buyers were hungry to deploy capital, and pricing for both LP-GP led transactions improved..
The result? A roaring six months for the market – deal flow rocketed to the largest on record, GP-led transaction volumes were up significantly at more than 86% compared to H1 2023, and LP-led volume wasn’t far behind at 62% vs the same period. We also saw demand for technology and VC / Growth assets skyrocket – LP-led volumes grew by 135% and Information Technology assets nearly tripled their share of GP-led transactions.
Key findings include:
Transaction volumes way up
Transaction volumes grew by 72% YoY to $69bn, with the full year on track to reach $137bn.
Single asset continuation funds surge
Single-asset continuation fund transaction volumes were 2.4x higher compared to the prior year, growing from $7.1bn in H1 2023 to $17.2bn in H1 2024.
Slowdown for fundraising
Secondary investors only raised $28bn of capital in H1 2024, compared to $86bn for FY 2023, as the fundraising focus shifted away from large generalist funds.
Tech assets in demand
LP-led volumes for VC / Growth funds grew by 135% compared to H1 2023, increasing by nearly $2bn. Over the same period, Information Technology nearly tripled its share of GP-led transactions, representing one-third of the volume in H1 2024.
Big increase for GP-leds
Desirable assets and increased demand led to an 86% increase in GP-led volume compared to H1 2023, reaching nearly $28bn.