The Strategic Expansion of Houlihan Lokey’s Capital Solutions Group in EMEA: Opportunities in GP-Led Secondaries Amid Market Maturation

Houlihan Lokey’s recent strategic moves in the EMEA region underscore its commitment to capitalizing on the maturing GP-led secondaries market. By appointing Sandro Galfetti and Michael Pilson to lead its GP-Led Secondary Advisory business in Europe, the firm is positioning itself to address the growing demand for liquidity solutions among private capital sponsors [1]. This expansion aligns with broader industry trends, where GP-led secondaries now account for 60% of all secondaries transactions advised in Q3 2025, reflecting a structural shift in how private equity firms manage portfolio exits [2].

The rise of continuation vehicles has been a cornerstone of this evolution. These structures allow general partners (GPs) to retain high-performing assets while offering liquidity to limited partners (LPs), a critical advantage in an environment marked by weak investor appetite for PE-backed IPOs and regulatory complexities [3]. Houlihan Lokey’s Capital Solutions Group has emerged as a key enabler of this trend, leveraging its expertise in structuring continuation funds and fund tender processes. With over $19 billion in transactional experience and 15 GP-led deals closed in 2024 alone, the firm is well-equipped to navigate the nuanced demands of this market [1].

However, the EMEA market is not without its challenges. While GP-led activity remains robust in Europe, its share of global GP-led volumes dipped by six percentage points year-on-year in H1 2025, highlighting the need for continued innovation and diversification [4]. Houlihan Lokey’s expansion into private credit and infrastructure advisory services—beyond traditional private equity—demonstrates its proactive approach to addressing these dynamics [2]. By broadening its mandate, the firm is not only catering to existing demand but also future-proofing its offerings against shifting investor priorities.

The strategic hires of Galfetti and Pilson further reinforce this vision. Both bring deep expertise in European private equity and secondary markets, enabling Houlihan Lokey to deepen relationships with fund sponsors and LPs while scaling its advisory capabilities [1]. This alignment with market needs is critical as GPs increasingly seek tailored solutions to optimize portfolio liquidity and navigate a fragmented exit landscape.

As the GP-led secondaries market matures, Houlihan Lokey’s EMEA expansion positions it as a pivotal player in shaping the next phase of private capital liquidity. By combining operational excellence with a forward-looking strategy, the firm is poised to capitalize on the region’s evolving opportunities while addressing the complex challenges of a post-pandemic investment environment.

Source:
[1] Houlihan Lokey Strengthens Capital Solutions Group With Senior Hire in Europe,
https://www.marketscreener.com/news/houlihan-lokey-strengthens-capital-solutions-group-with-senior-hire-in-europe-ce7c50d2dd8ff127
[2] Advisers broaden mandates beyond PE,
https://www.secondariesinvestor.com/secondaries-investory-advisory-survey-2025-advisers-broaden-mandates-beyond-pe/
[3] Continuation Funds and the Future of Private Equity Exits,
https://www.houlihancapital.com/continuation-funds-and-the-future-of-private-equity-exits/
[4] Europe's GP-led market is on a tear,
https://www.privateequityinternational.com/europes-gp-led-market-is-on-a-tear/