Inside the booming secondaries market in Europe: 'Who isn’t selling?’

2026-03-13 · Source: Sifted · Field: Finance & Economics — Capital Markets & Investment Management, Entrepreneurship & Start-ups · Depth: Intermediate, medium

Summary

Europe's secondaries market is experiencing a significant boom as Venture Capital (VC) firms increasingly seek liquidity for their Limited Partners (LPs). This trend is driven by a challenging exit environment, with fewer IPOs and M&A activities, prompting VCs to utilize secondaries to return capital. Investors are reporting premiums for highly sought-after assets, particularly in AI and deeptech sectors, with companies like ElevenLabs and Iceye being notable examples. The market is characterized by a shift towards more sophisticated transactions, including GP-led secondaries and continuation funds, which allow VCs to extend their hold on promising portfolio companies. While the market offers liquidity, it also presents complexities, including valuation challenges and the need for specialized expertise to navigate diverse deal structures.

Key takeaway

For investors seeking to capitalize on current market dynamics, you should closely monitor the European secondaries market, particularly for opportunities in high-growth sectors like AI and deeptech. Be prepared for competitive bidding on top-tier assets and understand the nuances of GP-led transactions and continuation funds, as these structures are becoming more prevalent for accessing quality companies and generating returns.

Key insights

Europe's secondaries market is booming, offering VCs liquidity amid a tough exit environment.

Principles

• Liquidity drives secondaries market growth.
• Premiums exist for in-demand tech assets.

Method

VCs are increasingly using GP-led secondaries and continuation funds to manage portfolios, extend hold periods for strong assets, and provide liquidity to LPs without traditional exits.

In practice

• Target AI and deeptech for premium secondaries.
• Explore GP-led deals for portfolio management.

Topics

• Secondaries Market
• Venture Capital
• European Tech
• ElevenLabs
• Deeptech

Best for: Investor, Entrepreneur, Tech Journalist

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Editorial summary, takeaway, and curation by AIssential. Original article published by Sifted.