It’s a key moment for secondary markets, with private credit giants in action
1 OCT, 2025
Comment by Marco Busca, Head of Indirect Private Debt at Generali AM, part of Generali Investments
Secondary private credit markets are solidifying as a strategic avenue, driven by two distinct dynamics. On one hand, established investors in this segment are increasing their allocations in search of better risk-adjusted returns. On the other, new participants are turning to the secondary market for quick and diversified access to already deployed portfolios.
This renewed interest has intensified competition for high-quality portfolios, especially those offering exposure to senior secured debt.
These portfolios are also focused on monetization, allowing investors to benefit from shorter durations, faster distributions, and regular interest payments. Predictability and diversification enhance the overall risk-return profile and reduce concentration risks for institutions.
Moreover, investors are gaining access to profitable, already-valued assets with predictable cash flows. This stability—combined with proper diversification—is increasingly attractive to institutional buyers.
Momentum driven by general partners
As limited partners (LPs) gain more awareness and involvement, general partners (GPs) are taking a more active role in energizing the market. They’re pushing deals through continuation vehicles, on-balance-sheet transactions, and transfers of independently managed accounts, aiming to accelerate distributions and manage liquidity more efficiently.
Continuation vehicles are gaining prominence within the secondary private credit market. This strategy is increasingly recognized as a standard portfolio management tool. GP-led transactions are also rapidly scaling. Deals ranging from $100 million to $1 billion are becoming common, reflecting greater confidence and appetite from institutional investors.
These large-volume deals tend to benefit from more efficient execution and tighter pricing.
