1,000 words or less: Secondaries to the rescue

Stepstone

Research

4 Pages

StepStone Group argues private equity secondaries are evolving from a niche liquidity valve into a core portfolio tool as distributions stay muted. The paper leans into a simple provocation: DPI is gaining mindshare over IRR, and repeat sellers are becoming part of the market’s structure, not a temporary response.

Date published: August 18, 2025

Key Takeaways

Liquidity toolkit: Secondaries increasingly function as an active lever for pacing, rebalancing, and cash management.
LP behavior shift: More investors treat selling as routine portfolio maintenance, not an emergency option.
GP led expansion: Continuation style transactions keep gaining acceptance as sponsors manage longer hold periods.
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