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Private secondary markets have soared in recent years as entrepreneurs and venture capitalists look for alternative exit strategies. Businesses are staying private for longer, and that's changing the way capital gets unlocked for all players. The magic of secondary markets is that they offer investors ways to generate liquidity without waiting for an IPO or acquisition. This primer on investing in private companies breaks down how access, liquidity, and risk have evolved in the absence of earlier IPOs.
According to Jeffries, the global secondary market grew to $103 billion in the first half of 2025 — an increase of over 50% from the year before. Not only is the market growing, but it is also becoming more sophisticated. The report shows that LPs (Limited Partners) are increasingly using programmatic secondary market sales, as well as exploring alternative structures. This overview of secondary markets explains how the space has evolved — and why growth is accelerating.
If you've only just got your head around the idea of secondary sales and private stock marketplaces, the very notion of making it more complicated or doing it more than once may have you running for the nearest exit, clutching your cap table and calling your lawyer before you’ve finished your coffee.
However, as a startup, this evolving market could help you access the funds you need. As the secondary market becomes deeper and more layered, that translates into better opportunities for startups and investors alike. Read on to find out how programmatic liquidity could be the next big move for secondary markets in the coming years.
Programmatic liquidity is about using the secondary market proactively, often repeatedly. Gone are the days when secondary markets were a kind of one-shot activity primarily used by distressed sellers. Today, secondary sales are becoming part of investors' toolkits.
The growth in programmatic liquidity reflects a shift in how institutional investors manage their private equity portfolios.
Rather than selling when there's a problem or regulatory issue – sometimes known as 'forced' selling – private equity holders actively manage secondary sales. They may use secondary markets as part of regular portfolio rebalancing. Or sell when prices are high because conditions are favorable. Or use secondary sales to free up funds for another project. This guide to secondary market risk highlights why selling proactively — rather than reactively — matters for both LPs and issuers.
As PJT Park Hill partner Adrian Millan told a Secondaries Investor podcast on programmatic secondaries sales, sellers are becoming more sophisticated and accustomed to making many transactions. "Most of the sellers today, especially at the scale end of the market, have been programmatic selling institutions that have worked through, in some cases, as many as ten plus transactions over that period."
Structured secondaries offer more flexibility, according to Espresso Capital. They are tailored arrangements that might include hybrid debt-equity instruments. There may be tax benefits on both sides. Sellers may be able to get better terms, and startups may be able to shape deals to better suit their needs.
For example, a company might sell a portion of its future cash flows, giving the seller receives regular payments over time rather than one lump sum. This can help build an ongoing relationship between buyer and seller, which can give stakeholders a bigger interest in the company's long-term success. This breakdown of startup equity strategies covers how partial liquidity helps maintain control and long-term alignment.
PJT Park Hill's research shows both an increase in programmatic liquidity and structured secondaries. In 2021, secondary market volume was split almost 50-50 between GP (General Partner) and LP-led activity, with no sign of structured liquidity at all. By 2024, structured liquidity solutions accounted for almost 7% of secondary-market volume.
The need for liquidity has forced the private equity market to look for alternative solutions. At the same time, technology has enabled dramatic changes in how private equity capital moves, particularly for top pre-IPO companies.
That's led to a rise in pre-IPO investment platforms that connect accredited investors with early-stage companies. For example, Augment* provides real-time data and supports investors, sellers, and issuers at every stage of the process. It opens private company investment to a much wider set of investors, removing much of the friction and making the process seamless.
In the past, private equity deals could take months with huge amounts of paperwork. Augment seeks to simplify the due diligence and legal processes for everybody involved. Compliance is built in from the start, and the platform removes the need for complex tender offers.
In terms of programmatic liquidity, Augment is designed for long-term value rather than one-off transactions, potentially making it an ideal tool for all parties.
*Augment Markets, Inc. is a technology company offering software and data services with securities-related services offered through its wholly-owned but separately managed subsidiary Augment Capital, LLC, Member of FINRA / SIPC.
Important Disclosures: This material has been prepared for informational purposes only. None of the information provided represents an offer or the solicitation of an offer to buy or sell any security. The information provided does not constitute investment, legal, tax, or accounting advice. You should consult with qualified professionals before making any investment decisions. Investing in private securities involves substantial risk, including the potential loss of principal.
Private securities are typically illiquid, have limited pricing transparency, and often require longer holding periods. These investments are available exclusively to qualified accredited investors and offer no guarantee of returns. Additionally, past performance of private securities does not indicate or predict future results.
FOR ACCREDITED INVESTORS ONLY: Under federal securities laws, private market investments on this platform are available exclusively to Accredited Investors. Verification of status required before investing. Private investments involve significant risks including illiquidity, potential loss of principal, and limited disclosure requirements. "Augment" refers to Augment Markets, Inc. and its affiliates. Augment Markets, Inc. is a technology company offering software and data services, in addition to financial products and services through its wholly-owned but separately managed subsidiary, Augment Capital, LLC. Securities are offered by Augment Capital, LLC, member of FINRA / SIPC.
