But the discount alone does not determine whether an investment is attractive. Reported valuations may lag changes in market conditions, and a discount may reflect genuine concerns about the portfolio, its financing or the time required to realize value. A buyer who pays less than reported NAV can still overpay if that NAV does not reflect what the underlying assets are ultimately worth.
Conversely, highly sought-after assets may command prices close to, or even above, reported NAV. The important question is whether the purchase price adequately compensates the buyer for the risks, costs and expected holding period.
Secondaries can also help investors construct portfolios across different managers, sectors and investment vintages. Rather than relying entirely on new commitments, buyers can select from existing fund interests or specific assets, depending on what is available and how much due diligence they can undertake.
These features help explain why secondaries may remain relevant even as traditional exit markets improve. They provide a way to manage private market exposure, not merely a response to delayed distributions.
What it means for advisors and family offices
For an advisor building a first PE allocation, secondaries flatten the J-curve: the buyer acquires seasoned, already-funded portfolios, so capital goes to work immediately, the discount provides day-one uplift, and distributions typically begin within one to three years rather than five to seven. For a mature allocation that is over-weight and under-distributing, the secondary market is the release valve: an LP can sell older fund stakes to rebalance, and a GP-led offer is a chance to take cash rather than roll. Evergreen secondaries vehicles now bring this to the wealth channel, in some cases with minimums of C$25,000; Jefferies estimates circa 41% of the US$113 billion that flowed into evergreen funds in 2025 went to secondaries.