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Women in Private Equity Roundtable: Martha Heitmann examines the future of secondaries amid liquidity pressures
At the recent Women in Private Equity Roundtable, Martha Heitmann, Partner at LGT Capital Partners, shared insights from her two-decade journey in private equity secondaries and discussed how evolving market conditions are influencing investor decisions and deal activity.
Private equity secondaries are gaining momentum as liquidity constraints and delayed exits reshape investor behavior. Martha emphasized that GP-led transactions and evergreen funds are sustaining deal flow, while traditional exit routes such as IPOs and M&A remain limited.
She noted that distribution yields have hovered around 10 percent in recent years. This figure was last seen during the 2009 financial crisis. At the same time, private markets are holding an estimated USD 13.5 trillion in unrealized NAV. In this environment, secondaries have become an essential tool for unlocking liquidity, as conventional exit channels are unable to absorb the volume of assets.
Martha identified growth areas including Asian secondaries and single-asset continuation vehicles. She expects the volume of transactions in the secondaries market to reach a record USD 200 billion in 2025, with potential to expand to USD 500 billion over the next five years, driven by innovation and sustained investor demand.
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