The credit secondary market reached USD 20.4 billion in transaction volume during the first half of 2026, more than doubling compared with the same period in 2025 and already exceeding full-year 2025 volumes, according to a new report from Evercore. The surge cements credit secondaries as one of the fastest-growing segments within private credit at a time when both GPs and LPs are seeking new liquidity solutions.

GP-led transactions were the dominant driver, accounting for approximately 83 per cent of H1 2026 credit secondary volume. Evercore found that general partners increasingly utilised continuation vehicles and other secondary alternatives to provide LPs with liquidity options, optimise mature portfolios, and extend the duration of performing assets. The report noted that "volume was spread across a larger number of processes and sponsors than in any prior period, highlighting the broader market adoption from both sponsors and buyers."

Traditional closed-end funds remained the primary source of credit secondary opportunities during the first half, as GPs sought to generate liquidity from mature 2018 to 2021 vintage funds during their harvest periods. However, Evercore identified a significant emerging supply source: business development companies and semi-liquid vehicles, where elevated redemption activity and liquidity needs are expected to create new secondary opportunities.

"Elevated redemption requests have not yet resulted in meaningful secondary market activity, though sponsors are increasingly evaluating ways to generate liquidity for investors through secondary transactions," the report stated. "Persistent redemption pressure could therefore create additional secondary opportunities over time."

The data aligns with broader trends in European private credit, where managers are exploring secondary solutions as an increasing number of 2018 to 2021 vintage direct lending funds approach maturity. European credit secondaries have also benefited from growing LP familiarity with the strategy — Rede Partners' latest survey identified credit secondaries among the satellite strategies attracting the most institutional interest as LPs diversify beyond core direct lending.

For European GPs, the expansion of the credit secondary market offers both a liquidity tool and a competitive consideration. Continuation vehicles allow managers to retain strong-performing assets while offering existing LPs an exit, but the rapid growth in GP-led volumes raises questions about potential conflicts of interest and the pricing of these transactions.

Evercore expects sustained liquidity needs and resilient credit fundamentals to continue supporting private credit secondary activity through the remainder of 2026.