The private equity secondary market has transformed from an obscure corner of alternative investments into a thriving ecosystem with record-breaking transaction volumes. What was once a niche market primarily serving distressed sellers has evolved dramatically. In 2024, the global secondary market saw an all-time-high in transaction volume of approximately $160 billion, representing remarkable growth from $114 billion in 2023 and $103 billion in 2022. Over the past decade, secondaries have grown at an impressive compound annual rate of 18%, outpacing even the robust 15% growth rate of the primary private equity market1.
This robust growth can be attributed to the favourable market environment over the last few years, but more importantly to long-term structural changes within private markets.
GLOBAL PRIVATE EQUITY (PRIMARIES) AUM ($BN)
GLOBAL SECONDARIES TRANSACTIONS ($BN)
The current macroeconomic environment has created particularly favourable conditions for secondary market growth. Elevated interest rates have significantly impacted traditional exit pathways, with both IPO activity and M&A transactions experiencing notable slowdowns. Consequently, private equity managers have extended holding periods for portfolio companies, creating a mismatch between fund lifecycles and investor liquidity expectations.
This prolonged holding period phenomenon has had cascading effects throughout the private equity ecosystem. As fund managers retain investments beyond initially anticipated timelines, limited partners (LPs) face delayed distributions, potentially hampering their ability to make new commitments. Some institutional investors have also found themselves overallocated to private equity relative to public market investments due to the denominator effect—where declining public market valuations automatically increase the percentage allocation to private assets. These factors collectively create compelling motivations for LPs to consider secondary sales.
The historically favourable demand-supply dynamic has fostered a buyers’ market, enabling buyers to choose from broad pools of assets and negotiate LP interests at attractive prices. This environment has facilitated the rise of attractive discounts as illustrated in the graph below.
LP-LED SECONDARIES PRICING (% NAV)
Although the deals that successfully closed were notably appealing, the sharp decline in pricing led to a significant bid-ask spread, complicating transactions. Many sellers opted to delay their activities in anticipation of more favourable conditions. However, the year 2023 witnessed a resurgence in prices, resulting in an uptick in deal flow. This normalization of pricing trends persisted into 2024, cultivating a robust and conducive environment for dealmaking.
In 2025, following the latest spate of market turbulence triggered by Trump’s fluctuating tariff announcements, many existing private equity investors are facing portfolio rebalancing considerations, some of which would be driven by the denominator effect resulting from tumbling public markets. This could represent a strong buying opportunity for secondaries investors, further reinforcing the positive dynamic of a buyers’ market, potentially allowing for negotiating power over discounts.
Investors are witnessing the beginning of a secondary buying opportunity in private markets and should be able to take part in this long-term trend, starting today. Carmignac Private Evergreen has a significant allocation to secondaries, targeting around a material allocation to secondary co-investments. This underscores the fund's prudent utilization of secondary market opportunities to enhance portfolio diversification and potential returns.
The fund further benefits from a strategic alliance with Clipway, a leading, highly innovative LP-interest focused secondaries firm. This partnership emerged from Carmignac's significant initial investment from its own balance sheet to seed Clipway's inaugural fund, cementing a foundation of trust and collaborative prowess. Thanks to this partnership, Carmignac Private Evergreen continuously receives co-investment opportunities alongside Clipway’s main fund – with no fee, no carry – allowing our experts to consider an extensive pipeline.
This partnership, combined with Carmignac’s in-house private equity team comprising of four dedicated experts, is also supported by sector, ESG and macroeconomic analysts and specialists, This enables us to offer an all-in-one solution that seeks quality deals and taps on the attractive pricing benefits of secondary markets: Carmignac has been disciplined with its approach to pricing, securing on average 15% discount at closing2, notably outperforming the average buyout discount rate of 6% in 2024.
The secondary market's expansion shows no signs of slowing, with some projections suggesting annual transaction volumes could reach $200 billion in 20253. This trend underpins a future where secondary transactions become increasingly integral to institutional investment strategies, providing greater flexibility and improved capital efficiency. As the market matures, we can expect further innovations in transaction structures, pricing mechanisms, and accessibility. Funds such as Carmignac Private Evergreen are already capitalising on these trends and attractive market dynamics.
Carmignac Private Evergreen
Carmignac Private Evergreen F EUR ACC
- Recommended minimum investment horizon
- 5 years
- Risk indicator*
- 6/7
- SFDR - Fund Classification**
- Article 8
*Risk Scale from the KID (Key Information Document). Risk 1 does not mean a risk-free investment. This indicator may change over time. **Sustainable Finance Disclosure Regulation (SFDR) 2019/2088. The SFDR classification of the Funds may change over time.
Main risks of the fund
Fees
- Entry costs
- 4.00% max. of the amount you pay in when entering this investment. This is the most you will be charged. Carmignac Gestion doesn't charge any entry fee. The person selling you the product will inform you of the actual charge
- Exit costs
- 5.00% Max. of your investment before it is paid out to you. 5% could be the maximum amount that may be charged to you. For A and I share classes, additional 5% could be the maximum amount that may be charged to you as the Early Redemption Fees if you request to redeem
your Shares within eighteen (18) months of the launch of the Sub-Fund.
- Management fees and other administrative or operating costs
- 1.71% of the value of your investment per year. This estimate is based on actual costs over the past year.
- Performance fees
- 15.00% of the Sub-Fund's positive returns subject to a five per cent (5%) Hurdle Rate. The real amount varies according to the
performance of your investment.
- Transaction Cost
- 0.03% of the value of your investment per year. This is an estimate of the costs incurred when we buy and sell the investments underlying the product. The actual amount varies depending on the quantity we buy and sell.
Performance
| Carmignac Private Evergreen | +0.8 | +25.3 |
| Carmignac Private Evergreen | +17.1% | - | +25.2% |
Source: Carmignac at May 30, 2025.
Date of 1st NAV : 15/05/2024.
Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). The Fund presents a risk of loss of capital.
The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.
Reference Indicator: -
This document is issued by, or communicated on behalf of, Carmignac Middle East Ltd, a company incorporated under the laws of the Dubai International Financial Centre with company number CL 13413 registered at GD-PB-04-01-OF-01-0, Level 1, DIFC Fund Centre, Level POD, Gate District Precinct Building 04, Dubai International Financial Centre, Dubai, United Arab Emirates and regulated by the Dubai Financial Services Authority under reference number F013638.
This document is intended solely for Professional Clients and Market Counterparties, as defined under the applicable rules of the Dubai Financial Services Authority (“DFSA”). It must not be relied upon by, or distributed to, Retail Clients or any other person.
The fund(s) referred to in this document are foreign fund(s) domiciled and regulated in Luxembourg by the Commission de Surveillance du Secteur Financier (“CSSF”). Carmignac Portfolio refers to the sub-funds of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive. Carmignac Private Evergreen refers to the Private Evergreen sub-fund of the SICAV Carmignac S.A. SICAV – PART II UCI, registered with the Luxembourg RCS under number B285278. Unless expressly stated otherwise, they are not domiciled in, authorised by, or subject to regulation or approval by the DFSA. The DFSA has not approved, reviewed or verified this document, the prospectus or any other fund documentation, and the authority does not accept responsibility for the information contained in them or for the merits of an investment in the fund(s).
This document is provided for information purposes only. It does not constitute investment advice, a recommendation, or an offer or solicitation to buy or sell any financial instrument or fund interest. Any investment decision should be made solely on the basis of the applicable legal offering documents, including the prospectus and, where applicable, the key information document, and after obtaining independent professional advice as appropriate. The information contained in this material may be partial information and may be modified without prior notice. They are expressed as of the date of writing and are derived from proprietary and non-proprietary sources deemed by Carmignac to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Carmignac, its officers, employees or agents.
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Investment in the fund(s) involves risk, including possible loss of capital. The value of investments and income may go down as well as up, and investors may not recover the amount originally invested. Past performance is not a reliable indicator of future results. Performances are net of fees (excluding possible entrance fees charged by the distributor). The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged. Any target, forecast, projection or forward-looking statement is based on assumptions and is not a guarantee of future performance or return.
Reference to certain securities and financial instruments is for illustrative purposes to highlight stocks that are or have been included in the portfolios of funds in the Carmignac range. This is not intended to promote direct investment in those instruments, nor does it constitute investment advice. The Management Company is not subject to prohibition on trading in these instruments prior to issuing any communication. The portfolios of Carmignac funds may change without previous notice.
The reference to a ranking or prize, is no guarantee of the future results of the UCITS or the manager.
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Funds classified as Article [8/9] products under the EU Sustainable Finance Disclosure Regulation (“SFDR”) are subject to an EU classification only, and does not represent a label, approval or endorsement by the Dubai Financial Services Authority or any UAE authority. Funds that pursue ESG related objectives alongside financial objectives do so without any guarantee that such ESG objectives will be achieved. ESG data and indicators may be based on third party sources, estimates and evolving methodologies and should not be viewed as a precise or comprehensive measure of sustainability performance.
The fund(s) may be subject to investment, market, liquidity, currency, credit, counterparty, concentration and other risks as described in the applicable offering documents. Prospective investors should conduct their own due diligence and carefully consider the risks, investment objectives, costs and suitability of an investment before making any decision.
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