Secondary activity in the private debt market has more than doubled since 2023, rising to more than $15bn (£11bn) in 2025, driven by delayed refinancing and a surge in amend-and-extend activity.
According to Bfinance, private debt secondary volumes stood at $6bn in 2023 and increased to $15bn last year, as fundraising for secondary investments in illiquid asset classes has reached a new high.
However, general partner (GP)-led transactions in private credit secondaries outstripped limited partner-led deals for the first time last year, reflecting a shift in underlying borrowing dynamics.
Anna Morrison, head of private equity at Bfinance, said the increase in secondary activity was being driven by delayed refinancing and a rise in loan extensions.
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A slowdown in the private equity market has pushed back refinancing timelines, stretching the average effective loan duration in direct lending from around two to three years to four to five years. This remains below the typical legal tenor of seven years, but is materially longer than many GPs and their investors had anticipated.
Alongside this, amend-and-extend activity has increased, with loan maturities being pushed beyond their original contractual limits.
“The result: substantial outstanding loans remain in play at the end of funds’ lifespans, with GP continuation—rather than a fresh loan from a different GP, as the increasingly popular fix,” Morrison said.
This comes as dedicated private credit secondaries vehicles have been raised by groups including Ares, Allianz, Coller and PGIM.
Fundraising for secondaries has also been strong overall, with more than $140bn raised by closed-ended secondaries funds in 2025, compared with less than $100bn in both 2024 and 2023, Bfinance said.
“While the evolution of secondary markets may be symptomatic of some current tensions, it may also represent some of the best sources of opportunity (and flexibility) when navigating these conditions,” she said.
