Secondaries Market Surges, But Exact Size Remains Elusive

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The secondaries market, where investors buy and sell stakes in private companies, has exploded in recent years as companies stay private longer and exits have dried up. New PitchBook data estimates that in 2025, somewhere between $62.5 billion to $120.9 billion were traded in U.S. direct secondaries. However, the secondaries market is structurally opaque, with many smaller deals happening through less transparent channels, making it difficult to get an accurate read on the true size of the market.

Why it matters

The rapid growth of the secondaries market highlights the challenges facing investors as private companies delay going public. The ability to buy and sell stakes in these private firms has become increasingly important, but the lack of transparency raises concerns about the efficiency and fairness of the market.

The details

The secondaries market has expanded rapidly in recent years, driven by the trend of companies staying private longer. Much of the trading happens through smaller, less transparent channels, making it difficult for data providers like PitchBook to get a precise read on the market's size. While large institutions like Goldman Sachs and Morgan Stanley have been active in the space, a significant portion of deals are brokered by smaller firms or individuals, often with incomplete information. This has led to a concentration of trading around a handful of the most sought-after private companies.

• In 2025, somewhere between $62.5 billion to $120.9 billion were traded in U.S. direct secondaries.
• In the fourth quarter of 2025, the top 20 startups on private stock marketplace Hiive accounted for 86.4% of secondary trading value, with the top five companies (like OpenAI and SpaceX) accounting for 55.6% of that volume.