Core Insights - Private investment funds for individuals are the fastest-growing source of capital in the $240 billion market for private secondhand stakes [1] - Secondaries accounted for approximately 40% of the $113 billion raised for evergreen funds, which cater to retail and smaller institutional investors [2] - The volume of secondaries transactions surged by 48% since 2024, reaching a record high as alternative asset managers seek retail capital amid a slowdown in institutional investments [3] Group 1 - The fair market value of secondaries in retail funds has nearly tripled since 2023, indicating a significant shift in investment strategies [4] - Seven of the ten largest buyers in the secondaries market are utilizing evergreen vehicles alongside traditional closed-end funds [4] - Retail funds initially focused on acquiring stakes in diversified portfolios, with buyers willing to pay premium prices for desirable portfolios [5] Group 2 - Retail strategies are increasingly supporting continuation funds, which allow asset managers to extend the holding period for valuable assets [6] - In 2025, secondary transactions led by limited partners, such as pensions and endowments, constituted 52% of secondary market activity, driven by the need for portfolio diversification and liquidity [7]