There was a sharp spike in the use of deferrals last year, driven by improved pricing for GPs and additional benefits for secondaries buyers, according to partner Gerald Cooper.
Ares Management data, shared with Secondaries Investor, shows deal volume for the asset class fell 21% in 2023 from the record $12.4bn clocked the year prior.
A record one-in-five investors are planning to invest in the strategy, according to affiliate title Private Debt Investor's latest LP Perspectives Study.
Lazard expects deal volume this year to approach or exceed 2021 levels as LPs and sponsors seek innovative liquidity options in the secondaries market.
Lexington Partners, Strategic Partners and Goldman Sachs Asset Management played a pivotal role in driving fundraising in the secondaries space last year.
More than one in four GPs used the secondaries market to extend hold periods, while a further 18% were enticed by unfunded commitments, according to the investment bank.
Strengthening pricing drove activity, helped by stabilising interest rates and an overall improvement in economic outlook.
LP-led deals drove the bulk of volume last year and accounted for 55% of total trading, according to data from the investment bank shared exclusively with Secondaries Investor.
It's a bright picture for investor interest in the strategy, affiliate title Private Equity International's LP Perspectives 2024 study has found.
Traditional LPs contemplating GP-led focused funds have been intent on identifying examples of fully crystallised continuation funds in recent years.
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