Private equity secondaries

The private equity secondaries market, including buyout, venture and growth, entered 2026 with continued momentum. Despite persistent macroeconomic and geopolitical uncertainty, it delivered its strongest first half on record. GP-led transactions were the primary driver of growth, with sponsors increasingly turning to continuation vehicles (CVs) as a credible alternative to traditional exit routes. Meanwhile, LP-led activity remained resilient, supported by investors actively rebalancing portfolios and accelerating distributions.

Two themes stand out as particularly consequential in shaping the current secondary landscape: the rapid emergence of venture and growth secondaries as a distinct market segment, and the expanding opportunity set across Asia.

Venture and growth secondaries have emerged as one of the more dynamic sub-segments in the first half of 2026, underpinned by a structural build-up of unrealized value and elongating distribution timelines. While they still represent only around 5% of the overall secondary volume, the opportunity set continues to grow.

Asia secondary activity is accelerating as liquidity needs rise and the regional GP and LP ecosystem matures. Deal volumes grew 53% year on year in 2025, and despite this growth the region remains materially underpenetrated relative to the size of its private equity market, supporting a long-term, structural opportunity for Asia-focused secondary investors.

In private equity, LGT Capital Partners closed more than USD 1.5 billion in secondary transaction volume across over 15 transactions, acquiring stakes in over 1,400 underlying companies. This included USD 660 million across 8 transactions in venture and growth capital, and USD 475 million across 5 transactions in Asia-Pacific. GP-led situations represented roughly three-quarters of the total transaction value, with LP portfolios accounting for the remainder. Europe was the largest region by deployment, followed by Asia-Pacific with over USD 475 million across 5 transactions, and North America. Examples of sizable transactions during the period include:

• Locomotive: a multi-asset GP-led CV comprising two European mid-market buyout assets, supporting the continuation of value-creation levers across both holdings
• Axis: a tail-end Asian LP portfolio of predominantly venture and growth assets, anchored by a fast-growing consumer internet platform
• Alchemy: a GP-led growth portfolio of AI-native companies held through a highly restrictive GP, positioned to benefit from the growth of agentic AI

Private credit secondaries

The private credit secondaries market entered 2026 on the back of a strong 2025. However, elevated volatility driven by software repricing, rising Business Development Companies redemptions and geopolitical uncertainty weighed on sentiment and widened bid-ask spreads. This caused a number of transactions to stall. Nevertheless, GP-led activity remained the primary engine of growth, with the market achieving a record USD 20bn in transaction volume in the first half of 2026, more than doubling the volume of the respective period in the previous year. Meanwhile LP-led activity is expected to regain momentum as credit valuations adjust and seller pricing expectations reset.

In private credit, LGT Capital Partners secured over USD 350 million in secondary transaction volume year-to-date, remaining highly selective. Year-to-date activity was driven by GP-led situations and included a high share of bilateral transactions. North America accounted for the majority of deployment, complemented by Europe and the rest of the world. LGT Capital Partners’ largest transactions during the period include:

• Sunray II: a high-quality strip of an existing first-lien, sponsor-backed portfolio acquired at a discount through a proprietary bilateral process
• Pivot: a structured capital solution into a seasoned credit portfolio, combining an entry discount with a preferred return and GP participation

Private infrastructure secondaries

Infrastructure secondaries remained active in the first half of 2026, supported by continued demand for liquidity solutions and the broader use of GP-led transactions as a portfolio management tool. CVs continued to represent an important part of the opportunity set, particularly for established infrastructure assets with resilient cash flow profiles and clear value creation plans.

In infrastructure, LGT Capital Partners closed more than USD 120 million of secondary transaction volume across four GP-led transactions during the period, acquiring six projects. These transactions provided access to sponsor-led secondary opportunities and diversified underlying infrastructure exposure across sectors and geographies. Recent transactions include:

• Ascend: a secondary investment in a leading global container leasing platform with exposure to a contracted, globally diversified fleet supporting essential trade infrastructure
• Lagopus: a GP-led transaction providing exposure to a value-add digital infrastructure portfolio