This isn’t a story about winners and losers in the secondary market

The private markets have long speculated that the growth of the GP-led market will dwindle once the mergers and acquisitions (M&A) market regains momentum. However, this hypothesis did not materialize in 2025. Despite expectations of a decline in GP-led deals due to a resurgence in the M&A space, the data from last year paints a different picture.

In the private markets, there is often a juxtaposition between the GP-led market and the M&A market. Many investors anticipated that as the M&A market gained traction, the GP-led market would see a corresponding decrease in activity. This anticipation was rooted in the belief that limited partners (LPs) would shift their focus and capital allocation away from GP-led deals in favor of traditional M&A transactions. However, despite these predictions, the data from 2025 shows that the GP-led market remained robust and active.

One of the key factors that contributed to the continued strength of the GP-led market in 2025 was the resilience and adaptability of general partners (GPs). GPs demonstrated their ability to navigate market dynamics and identify opportunities for value creation through GP-led transactions. This adaptability allowed GPs to leverage their expertise and relationships to execute successful GP-led deals, even in the face of a recovering M&A market.

Additionally, LPs played a significant role in sustaining the GP-led market throughout 2025. Despite the potential allure of traditional M&A investments, LPs continued to show confidence in the GP-led model and the ability of GPs to deliver value through these transactions. The ongoing support and commitment of LPs provided a solid foundation for the GP-led market to thrive and grow in the face of changing market conditions.

Furthermore, the GP-led market in 2025 demonstrated a remarkable level of diversity and innovation. GPs explored a variety of transaction structures, from traditional buyouts to more complex secondary and restructuring deals. This diversity not only showcased the creativity and flexibility of GPs but also opened up new avenues for value creation and investment opportunities within the market.

Looking ahead, the persistence and resilience of the GP-led market in 2025 serve as a testament to the strength and adaptability of private markets participants. Despite the initial speculations around the market dynamics between GP-led and M&A transactions, the data from 2025 highlights the continued relevance and importance of the GP-led market in the private markets ecosystem. By embracing innovation, diversity, and collaboration, private markets participants can navigate changing market conditions and continue to drive value creation through GP-led transactions.