Secondary Fundraising as % of Private Market Fundraising from 2014 to 2024

Secondary funds have seen a banner year, raising over US $100 billion in 2024 through early December—a record-breaking 9.5% of all private market fundraising. With high interest rates and constrained M&A activity, limited partners (LPs) have increasingly sought liquidity, creating opportunities for secondary vehicles to step in. 

Despite discounts averaging 15% below net asset value, VCs are focused on long-term appreciation rather than immediate bargains. Most of VCs remain cautiously optimistic about IPO activity recovering in 2025. This year’s 9.5% share of private market fundraising marks a substantial rise from 5.8% in 2023, and only the second time secondaries have exceeded 6% since the Fed’s COVID-19-driven rate cuts in 2020. These dynamics signal a healthier balance between supply and demand for liquidity in private markets.