What has the Compound Annual Growth Rate (CAGR) of secondaries been over the past decade?

The Compound Annual Growth Rate (CAGR) of secondaries over the past decade has been particularly strong, reflecting the increasing maturity and acceptance of the secondary market within private equity. This market allows investors to buy and sell existing stakes in private equity funds, offering liquidity and the potential for attractive returns compared to traditional primary fund investments.

A CAGR of 16% indicates robust growth, driven by factors such as increasing participation in the secondary market, the rise of specialized secondary funds, and the growing volume of assets available for sale as investors look to rebalance their portfolios or seek liquidity. This figure underscores the trend towards expanding opportunities in secondaries and highlights the market's evolution as a key component of private capital advisory strategies.

In contrast, lower CAGR figures like 10% or 12% would not capture the extent of this growth, and even 20% might represent an overestimation given market conditions and investor behavior observed over the decade. Thus, 16% serves as a more accurate reflection of the performance and potential that the secondary market has demonstrated during this period.