Is Private Equity's Secondaries Market Reaching a Tipping Point?

The private equity secondaries market is undergoing a seismic shift, driven by structural demand, evolving investor priorities, and the maturation of legacy firms like Coller Capital. As the sector transitions from a niche liquidity tool to a cornerstone of institutional portfolios, questions about its trajectory-and the role of pioneering firms-have taken center stage. With transaction volumes hitting $160 billion in 2024 and GP-led strategies accounting for half of Coller's portfolio, the market appears poised for a tipping point. However, this growth is not without challenges, particularly as firms navigate succession planning and organizational evolution in an increasingly competitive landscape.

Structural Demand and Market Dynamics

The secondaries market's surge is fueled by a confluence of macroeconomic and structural factors. Improved public market conditions, including an 89% year-over-year increase in IPO proceeds from Q3 2024 to Q3 2025, have enhanced exit opportunities for private equity firms, making secondaries an attractive avenue for liquidity. Simultaneously, the rise of perpetual funds-such as 40' Act vehicles-has democratized access to secondary strategies, enabling retail investors to mitigate the J-curve while gaining exposure to mature assets. These trends are amplified by sector-specific growth, credit and infrastructure secondaries achieving a 17% CAGR over five years, outpacing the broader market's 13% CAGR.

Coller Capital, a pioneer in the space, has capitalized on this momentum. Its 42nd Global Private Capital Barometer reveals that 37% of investors plan to increase allocations to secondaries in the next year, underscoring the strategy's growing appeal. The firm's dual focus on LP- and GP-led transactions-particularly its expertise in continuation vehicles-positions it to address both liquidity constraints and value preservation for stakeholders. Yet, as the market matures, Coller and its peers face mounting pressure to institutionalize operations and adapt to shifting leadership dynamics.

Succession and Institutionalization at Coller Capital

Jeremy Coller's leadership has long defined the firm's identity, but recent developments signal a strategic pivot toward institutionalization. In late 2025, State Street Investment Management acquired a minority stake in Coller, a move that not only diversifies the firm's capital base but also eases the burden of succession planning. This partnership aligns with broader industry trends, as secondaries firms seek to balance founder-driven innovation with scalable governance structures.

However, the firm's 9th fund, targeting $12 billion, has faced delays in fundraising, raising concerns about its ability to retain top talent and maintain its market-leading position. The prolonged closure highlights the challenges of scaling in a sector where competition is intensifying. For Coller, the stakes are high: as GP-led transactions-particularly single-asset deals-surge to $77 billion in 2024 (a 50% year-over-year increase), firms must demonstrate agility in executing complex strategies while maintaining operational discipline.

Implications for the Secondaries Market

The interplay between structural demand and organizational evolution is reshaping the secondaries landscape. For legacy firms like Coller, the tipping point lies in their ability to harmonize innovation with institutional credibility. The firm's historical firsts-such as its 1996 GP-led transaction have cemented its reputation as a market innovator. Yet, in an era where perpetual funds and credit strategies are redefining liquidity paradigms, Coller must ensure its succession plans and operational frameworks keep pace with investor expectations.

Moreover, the market's growth hinges on its capacity to address regulatory and liquidity pressures. As limited partners (LPs) increasingly view secondaries as a tool for portfolio rebalancing and risk mitigation, firms must demonstrate transparency and alignment with evolving compliance standards. Coller's opportunistic approach-leveraging both LP- and GP-led strategies-offers a blueprint for navigating these challenges, but its long-term success will depend on its ability to institutionalize while preserving the agility that has defined its legacy.

Conclusion

The private equity secondaries market is undeniably approaching a tipping point, driven by structural demand, sector specialization, and the rise of perpetual liquidity solutions. For firms like Coller Capital, the path forward requires a delicate balance: maintaining their pioneering edge while institutionalizing leadership and operations to meet the demands of a maturing market. As State Street's investment and Coller's 9th fund illustrate, the next phase of growth will be defined not just by transaction volumes, but by the resilience and adaptability of the firms that shape this dynamic sector.