Optimism abounds in secondary markets and financial institutions

Transaction volumes in private market secondaries are growing rapidly, writes Simon Tang of Accelex, in this week’s In My Opinion column.

He reveals that in the first quarter of 2025, a total of USD40 billion in LP-led deals was executed. “When compared with the USD89 billion volume seen across the whole of 2024, it’s clear to see we are on track for another record-breaking year in the secondaries market,” Tang says.

And it’s partly down to tariffs. Tariffs are having a significant impact on global markets, Tang says, and although the initial effects were felt most severely in share prices of listed equities, the shockwaves are spreading to Main Street, including family-owned businesses, SMEs and private equity-backed companies.

“Public or private, few businesses are immune to tariffs as companies are impacted either directly or indirectly in this integrated global economy.”

And the situation is more complicated than it initially appears, with Tang noting that while some LPs may offload some of their primary funds in the secondary market, these same LPs could also be buying secondary opportunities which are now repriced, either to access GPs and funds that they previously could not, or to acquire positions at below net asset value (NAV).

This provides them with protection from any potential downside within their portfolios, without reducing their overall exposure, Tang says.

We can’t resist a little ETF news from our sister title, ETF Express, bringing you our latest Off the Record podcast with State Street’s man in Sydney, Abdul Ibrahim, talking about the growth of ETFs in the APAC region. Listen here.

We would also urge you to nominate your favourite ETF service provider firms in Japan ahead of ETF Express’s inaugural Japanese awards. The link is here.

And finally, some good news. Lloyds Bank’s annual financial institutions survey reveals that UK financial institutions are positioning themselves for growth. The survey reveals that more than half (55 per cent) of institutions expect their business to grow over the next 12 months. This increases to 83 per cent of firms anticipating growth within their own businesses over a five-year period. To support these ambitions, 25 per cent anticipate further expansion within financial services, while 58 per cent expect to maintain their current trajectory, underlining a stable and resilient outlook across the sector.

Beverly Chandler, Managing Editor, Institutional Asset Manager

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