The credit secondary market reached $20.4bn (£15.3bn) in the first half of 2026, more than doubling compared with H1 2025 and already exceeding full-year 2025 transaction volume, according to new report by Evercore, with new opportunities being created by redemption pressures faced by business development companies (BDCs).

GP-led transactions drove growth, accounting for approximately 83 per cent of H1 2026 credit secondary volume. The report found that GPs increasingly utilised continuation vehicles and other secondary alternatives to offer LPs an option for liquidity, optimise mature portfolios and extend duration for existing performing assets.

“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,” the report said.

Read more: UK insurers “resilient” under stress despite growing private credit allocations

The report found that traditional closed-end funds remained the primary source of credit secondary opportunities in the first half of the year, as GPs sought to generate liquidity from mature 2018-2021 vintage funds during their harvest periods.

It said that BDCs and semi-liquid vehicles are expected to become an increasingly relevant source of supply as redemption activity and liquidity needs 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. Persistent redemption pressure could therefore create additional secondary opportunities over time,” the report said.

“Looking ahead, sustained liquidity needs and resilient credit fundamentals should continue to support private credit secondary activity through 2026.”

Read more: Institutional investors maintain private credit exposure despite headlines