Houlihan Lokey's Strategic Expansion in the Secondary Market: A Catalyst for Long-Term Value Creation

Houlihan Lokey’s recent strategic moves in the secondary market advisory and capital solutions sectors underscore its commitment to capitalizing on evolving private capital dynamics. By expanding its Capital Solutions Group and deepening its expertise in GP-led transactions, the firm is positioning itself to capture a significant share of a maturing market. This expansion, driven by targeted hires, diversified service offerings, and a focus on liquidity solutions, is poised to drive long-term value creation for stakeholders.

Strategic Hires and EMEA Expansion: Building a Global Liquidity Engine

Houlihan Lokey’s appointment of Sandro Galfetti and Michael Pilson to lead its GP-led secondary advisory business in the EMEA region marks a pivotal step in its growth strategy. Galfetti, a former UBS executive with extensive experience in structuring liquidity solutions, brings critical expertise to a market where GP-led secondaries now account for 60% of all transactions in Q3 2025 [1]. This shift reflects a broader industry trend: general partners (GPs) increasingly favor continuation vehicles to retain high-performing assets while providing liquidity to limited partners (LPs), particularly amid regulatory uncertainties and a challenging IPO environment [1].

The firm’s EMEA expansion is not merely a geographic play but a response to client demand. With over $19 billion in GP-led transaction experience and 15 deals closed in 2024 alone [1], Houlihan Lokey is leveraging its track record to address the unique needs of private capital sponsors. By establishing a strong presence in Zurich and London, the firm is aligning with the EMEA region’s role as a hub for alternative asset managers and institutional investors.

Market Trends and the Rise of GP-Led Solutions

The secondary market’s evolution is a key driver of Houlihan Lokey’s strategy. GP-led transactions have surged in popularity, accounting for 60% of secondaries activity in Q3 2025 [1]. This growth is fueled by the rise of continuation vehicles, which allow GPs to extend fund lifespans and avoid the complexities of traditional secondaries. For example, Houlihan Lokey’s Capital Solutions Group has facilitated 15 GP-led deals in 2024, demonstrating its ability to execute complex structures in a competitive landscape [1].

However, challenges persist. EMEA GP-led volumes dipped by 6% year-over-year in H1 2025 [1], prompting the firm to diversify into private credit and infrastructure advisory services. This move not only mitigates risk but also taps into sectors with strong tailwinds, such as the growing demand for non-traditional financing solutions. By integrating these services with its secondary advisory expertise, Houlihan Lokey is creating a holistic offering that addresses the full spectrum of client needs.

Diversification and Future-Proofing the Business

Houlihan Lokey’s expansion into private credit and infrastructure advisory is a strategic hedge against market volatility. The firm’s Capital Solutions Group now offers a range of financing alternatives, including unitranche loans, structured equity placements, and asset-backed financings [3]. This diversification is critical in a landscape where LPs are increasingly seeking tailored liquidity solutions. For instance, the firm’s ability to execute fund tender processes and direct placements—often in collaboration with its Corporate Finance teams—highlights its agility in adapting to client demands [1].

Moreover, the firm’s global footprint, with over 170 professionals across 15 offices in six countries [3], enables it to scale its services efficiently. This infrastructure positions Houlihan Lokey to capitalize on cross-border opportunities, particularly as private capital flows continue to shift toward EMEA and Asia-Pacific markets.

Conclusion: A Recipe for Sustainable Growth

Houlihan Lokey’s strategic expansion in the secondary market is a masterclass in aligning with industry tailwinds. By investing in talent, diversifying its service offerings, and leveraging its transactional expertise, the firm is not only addressing current market needs but also future-proofing its business. As GP-led secondaries mature and private credit gains traction, Houlihan Lokey’s proactive approach is likely to translate into sustained revenue growth and enhanced client retention. For investors, this represents a compelling case for long-term value creation in a sector poised for continued innovation.

**Source:[1]
The Strategic Expansion of Houlihan Lokey's Capital Solutions Group in EMEA[2]
Houlihan Lokey Strengthens Capital Solutions Group With Senior Hire in Europe[3]
Capital Solutions