The Rising Influence of Private Credit Secondaries and Strategic Leadership Shifts in the Space

The departure of Andrew Carter from JPMorgan Chase & Co. in 2025 marks a pivotal moment in the evolution of private credit secondaries—a market segment that has surged from niche curiosity to strategic cornerstone for institutional investors. Carter, who led JPMorgan's private credit secondaries strategy since 2022, leaves behind a legacy of innovation in a space now valued at over $1.6 trillion. His exit, while unexplained by the firm, coincides with a broader industry shift toward liquidity-driven strategies and yield-seeking alternatives, signaling both opportunity and caution for investors navigating this complex asset class.

The Carter Era: Building a Secondaries Ecosystem

Andrew Carter's tenure at JPMorgan was defined by his role in institutionalizing private credit secondaries as a proactive liquidity tool rather than a reactive solution. Prior to joining JPMorgan, Carter's experience at Tikehau Capital and Barclays positioned him as a seasoned architect of secondary market strategies. At JPMorgan, he capitalized on the aging vintages of private credit funds and the rising demand for yield in a post-pandemic, high-interest-rate environment. By 2024, the private credit secondaries market had already hit $102 billion in volume for the first half of the year alone, with GP-led continuation vehicles and LP-led portfolio rebalancing driving much of the activity.

Carter's leadership aligned with a critical industry insight: private credit secondaries are no longer a niche. They are now a mainstream mechanism for managing illiquid exposures, optimizing capital, and accessing high-conviction assets. His emphasis on transparency, structured bid processes, and alignment with LP interests helped normalize secondaries as a strategic asset class. This shift is evident in the growing sophistication of transactions, from bespoke continuation funds to NAV-based financing structures that bridge liquidity gaps.

Industry Dynamics: A Market in Motion

Carter's departure comes amid a perfect storm of macroeconomic and structural forces. The aging pool of private credit funds—many of which were raised during the 2016–2019 vintage boom—has created a wave of maturing assets. At the same time, institutional investors, including pension funds and insurance companies, are increasingly overexposed to private assets due to the denominator effect. This has spurred a surge in secondary transactions as LPs seek to rebalance portfolios and free up capital.

The market's growth is further fueled by innovation. GP-led continuation vehicles, which allow sponsors to extend the life of high-performing funds, now account for nearly half of all secondaries volume. Meanwhile, LP-led deals have gained traction as investors proactively manage risk across vintages and sectors. The rise of evergreen funds and secondary market financing tools has also democratized access to liquidity, reducing the stigma once associated with selling private assets.

Strategic Implications for Institutional Investors

For institutional investors, the maturation of private credit secondaries presents a compelling case for allocation. The asset class offers dual benefits: yield generation in a low-interest-rate environment and diversification across alternative strategies. With public market valuations volatile and traditional fixed income yields constrained, private credit secondaries provide a unique avenue to capture risk-adjusted returns.

However, the market's complexity demands careful due diligence. Unlike traditional secondaries in buyout or venture capital, private credit secondaries require deep expertise in credit analysis, asset valuation, and covenant structures. Investors must also navigate the risks of overleveraged borrowers and macroeconomic shocks, particularly in a post-Basel III lending landscape.

The departure of a leader like Carter underscores the importance of strategic alignment. JPMorgan's decision to exit its secondaries strategy—whether through leadership transition or internal realignment—highlights the need for investors to assess the long-term commitment of their partners. Firms with deep credit expertise and a track record in secondary markets, such as Coller Capital and Apollo, may offer more stability in this evolving space.

Looking Ahead: Opportunities and Caution

As the private credit secondaries market enters 2025, its trajectory appears firmly upward. The $160 billion in total secondaries volume recorded in 2024 (per Jefferies) and the record fundraising by firms like Pantheon and Coller Capital signal robust demand. Yet, the market's growth also invites scrutiny. Regulators and risk managers are increasingly focused on systemic risks, particularly in asset-backed credit and leveraged lending segments.

For investors, the key lies in balancing innovation with prudence. Allocating to private credit secondaries should be part of a broader diversification strategy, complementing traditional private equity and venture capital holdings. Those who can navigate the asset class's complexities—through partnerships with experienced managers or in-house expertise—stand to benefit from its unique liquidity and yield advantages.

Andrew Carter's exit from JPMorgan is not merely a personnel change; it is a barometer of the private credit secondaries market's transformation. As the space continues to mature, it will remain a critical tool for institutional investors seeking to navigate the challenges of a post-pandemic, high-yield world. The question is no longer whether to participate, but how to do so strategically.