The Rise of Secondaries: Unlocking Liquidity in Private Markets

In this episode of Goldman Sachs Exchanges, Allison Nathan hosts Harold Hope and Alex Blostein to discuss the growth and evolution of the private equity secondary market. They define secondary investing as providing liquidity to investors in long-term private equity investments, and explore the market's history and its division into LP secondaries and GP-led secondaries. The discussion covers the significant growth in the secondary space, driven by the expansion of private markets and the need for liquidity, as well as the increasing participation of retail investors. They address the opportunities and challenges that come with this growth, including the increased demand for liquidity and the evolving roles of both buyers and sellers in the market. The speakers also discuss how investors are using secondaries within their portfolios for diversification and risk management, and the potential for continued growth in the secondary market, highlighting its importance within the broader alternative asset space.