Talking Wealth Private Equity's Liquidity Problem
Feb 4, 2026
Marc Rubinstein, author of the Net Interest newsletter and seasoned private-markets analyst, breaks down the rise of secondaries in private equity. He explains why private assets stay private longer. He outlines how liquidity is engineered, who sells and who buys, and why big firms are piling into secondaries.
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Private Equity Lags A Fast World
- Private equity remains slow while the broader economy speeds up, creating a mismatch in holding periods and investor impatience.
- That mismatch fuels demand for secondary markets to engineer liquidity rather than wait years for exits.
Secondaries Went From Niche To Core
- Secondaries began as a niche resale channel for LPs but have grown exponentially since the 2010s.
- Increased seller demand and a bigger buyer base transformed secondaries from peripheral to core in private markets.
Always Probe Why Sellers Exit
- Ask why an LP is selling: rebalancing, new CIO strategy, or distress change the quality of assets offered.
- Treat seller motives as a core diligence input before pricing or buying stakes.