The credit score secondary market reached $20.4bn (£15.3bn) within the first half of 2026, greater than doubling in contrast with H1 2025 and already exceeding full-year 2025 transaction quantity, based on new report by Evercore, with new alternatives being created by redemption pressures confronted by enterprise improvement corporations (BDCs).
GP-led transactions drove development, accounting for roughly 83 per cent of H1 2026 credit score secondary quantity. The report discovered that GPs more and more utilised continuation automobiles and different secondary alternate options to supply LPs an possibility for liquidity, optimise mature portfolios and prolong period for current performing property.
“Quantity was unfold throughout a bigger variety of processes and sponsors than in any prior interval, highlighting the broader market adoption from each sponsors and consumers,” the report mentioned.
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The report discovered that conventional closed-end funds remained the first supply of credit score secondary alternatives within the first half of the yr, as GPs sought to generate liquidity from mature 2018-2021 classic funds throughout their harvest intervals.
It mentioned that BDCs and semi-liquid automobiles are anticipated to develop into an more and more related supply of provide as redemption exercise and liquidity wants create new secondary alternatives.
“Elevated redemption requests haven’t but resulted in significant secondary market exercise, although sponsors are more and more evaluating methods to generate liquidity for traders by secondary transactions. Persistent redemption stress might due to this fact create further secondary alternatives over time,” the report mentioned.
“Wanting forward, sustained liquidity wants and resilient credit score fundamentals ought to proceed to help personal credit score secondary exercise by 2026.”
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