06 | LP-led transaction activity analysis

Public pensions and asset managers led the surge in LP-led sales, capitalizing on improved pricing to address portfolio management needs.

Type of sellers in H1 2024 and H1 2023¹

  • Pensions drove LP-led transaction activity in H1 2024, seeing a 12 percentage point increase compared to H1 2023. Sellers are fatigued from persistent overallocations and capitalized on the improvement in pricing in H1 2024. We expect repeat sellers to drive supply as they continue to actively manage allocations between private and public markets.
  • Asset management firms also significantly increased selling activity. Notable transactions included sales by leading buyers in the secondary market, as these firms sought to benefit from the favorable market conditions in order to navigate the lack of liquidity from their underlying portfolios.
  1. Split by transaction value (purchase price plus unfunded) per respondent

Middle market and mega buyout funds continue to drive LP-led sales, with growing interest in small-cap and venture / growth sectors.

Type of funds sold in H1 2024 and H1 2023¹

  • While mega and middle market buyouts remain a sustained focus, attention has shifted toward small buyout funds, which increased their share of selling activity by 7 percentage points year-over-year. As macroeconomic conditions improved, buyers’ confidence underwriting less liquid lower-middle market managers also increased.
  • Venture and Growth transactions saw a strong increase in transaction volumes, growing by c. $2.0bn (c. 4 points) compared compared to H1 2023. Improved pricing led many sellers to come off the sidelines and complete long-overdue portfolio management exercises.
  • Last year represented a record year for infrastructure secondary volumes, fueling buyer demand for the sector. While volume cooled slightly in H1 2024, demand did not and the lower volumes have resulted in a tightening of pricing. This dynamic is bringing sellers to market through late Q2 and early Q3, suggesting a potential for strong H2 2024 volumes.
  1. Split by transaction value (purchase price plus unfunded) per respondent

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