Private equity markets are at a watershed moment. A structural increase in competition, driven by dry powder accumulation, and capital market dislocation, are causing a significant decrease in exit liquidity and creating a scarcity of high-quality investment opportunities.

In our latest report, we uncover the following:

• How the single-asset secondary segment can account for 4%-8% of overall European PE exit activity, or €10bn-€20bn p.a., by 2025.

• Depending on pace of growth in the segment, concentrated GP-led deals could account for almost a fifth of sponsor-to-sponsor exit deal flow by 2025, effectively reallocating some of the top-quartile opportunities institutional investors previously accessed via direct managers to secondary capital pools.

• The drivers of the growth in Europe’s single-asset secondary space, from both a GP and LP perspective, including superior returns, a more attractive opportunity set at a time of heightened competition for assets, greater alignment between partners, better control over portfolio construction and preferable cashflow profile to a traditional primary buyout fund.