Liquidity is currently the main concern for limited partners (LPs) in the private equity industry. This is due to longer holding periods and high unrealized values, which are prompting investors to request capital returns from general partners (GPs).

The secondaries market is experiencing strong growth, with transaction volumes expected to increase further. This growth is driven by the growing acceptance of secondaries among investors and fund managers, as well as their application in various sub-asset classes such as private credit and infrastructure. The emergence of semi-liquid secondaries funds is also changing traditional investment approaches. Unlike traditional closed-ended private equity funds, which are illiquid and have long lifespans, semi-liquid funds offer more flexible redemption opportunities, typically on a monthly or quarterly basis, to meet the changing needs of investors.

Investment strategies within the sector are being reshaped as a result of the liquidity concerns. The secondaries market, in particular, is seeing significant growth, with transaction volumes expected to rise. This growth is driven by the increasing acceptance of secondaries among investors and fund managers, as well as their application in various sub-asset classes. Additionally, the emergence of semi-liquid secondaries funds is changing the traditional investment landscape, offering more flexibility in redemption opportunities to meet the evolving needs of investors.