Four in five advisers and trustees have clients that need to sell illiquids
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UK pension funds are expected to sell £4bn to £8bn worth of private markets assets on the secondaries market this year, new research suggests, as four in five advisers and trustees have clients with illiquid holdings they need to exit.
New research by mallowstreet, in partnership with secondaries platform MeltX, found 2026 sales by UK pension schemes could represent about 5% to 10% of global LP-led secondary market sales, assuming 2026 activity is in line with last year’s.
Private debt and private equity are the most likely asset classes to be sold, according to the survey, which is based on responses from 42 advisers and professional trustees representing a combined £928bn of UK defined benefit assets.
The report identified valuation uncertainty, mismatched expectations and insufficient price discovery as the biggest barriers to selling. Those with larger DB books were also concerned about a limited pool of credible buyers.
Where schemes want to or need to sell private assets, 63% said secondary platforms are the route to doing this. Other options would include broker-led sales, in-specie transfers to insurers, deferred buyout premiums, sponsor loans and GP-led solutions.
Running off illiquid assets remains the preferred choice for 88% of advisers and professional trustees when timelines permit, but with many defined benefit schemes reaching their funding targets ahead of plan, a growing number have been looking to offload illiquids to buy in with an insurer sooner than scheduled.
New research by mallowstreet, in partnership with secondaries platform MeltX, found 2026 sales by UK pension schemes could represent about 5% to 10% of global LP-led secondary market sales, assuming 2026 activity is in line with last year’s.
Private debt and private equity are the most likely asset classes to be sold, according to the survey, which is based on responses from 42 advisers and professional trustees representing a combined £928bn of UK defined benefit assets.
The report identified valuation uncertainty, mismatched expectations and insufficient price discovery as the biggest barriers to selling. Those with larger DB books were also concerned about a limited pool of credible buyers.
Where schemes want to or need to sell private assets, 63% said secondary platforms are the route to doing this. Other options would include broker-led sales, in-specie transfers to insurers, deferred buyout premiums, sponsor loans and GP-led solutions.
Running off illiquid assets remains the preferred choice for 88% of advisers and professional trustees when timelines permit, but with many defined benefit schemes reaching their funding targets ahead of plan, a growing number have been looking to offload illiquids to buy in with an insurer sooner than scheduled.
“It’s no secret that UK DB schemes are continuing to look for liquidity from private markets as they derisk,” said Stuart Hanson, co-founder of MeltX.
Hanson founded the platform together with Oliver Jaegemann in 2025, running auctions on a quarterly basis. These have averaged about £1bn of assets listed per auction, according to Hanson. Listing is free, with a fee charged on completion of a deal.
As well as supporting exits, better secondary market infrastructure could make future investment more attractive, said report author Ally Georgieva, head of insights at mallowstreet.
“If liquidity is credible and accessible, DB schemes are more likely to stay invested in private markets, rather than reduce exposure altogether,” she predicts.
Half of advisers told mallowstreet that at least one or two of their clients would be interested in buying secondaries, and over three-quarters think a more efficient market would make schemes at least somewhat more willing to increase illiquid allocations.
Activity in the secondaries market is already high; transaction volume reached about $240bn (£175bn) across private market asset classes last year, up 50% on 2024, according to consultancy bfinance, based on data by Jefferies.
The consultancy acknowledges a rise in LP-led secondary transaction activity but warned there have also been ‘synthetic’ exits, where fund managers look to create liquidity through GP-led continuation funds.
Hanson founded the platform together with Oliver Jaegemann in 2025, running auctions on a quarterly basis. These have averaged about £1bn of assets listed per auction, according to Hanson. Listing is free, with a fee charged on completion of a deal.
As well as supporting exits, better secondary market infrastructure could make future investment more attractive, said report author Ally Georgieva, head of insights at mallowstreet.
“If liquidity is credible and accessible, DB schemes are more likely to stay invested in private markets, rather than reduce exposure altogether,” she predicts.
Half of advisers told mallowstreet that at least one or two of their clients would be interested in buying secondaries, and over three-quarters think a more efficient market would make schemes at least somewhat more willing to increase illiquid allocations.
Activity in the secondaries market is already high; transaction volume reached about $240bn (£175bn) across private market asset classes last year, up 50% on 2024, according to consultancy bfinance, based on data by Jefferies.
The consultancy acknowledges a rise in LP-led secondary transaction activity but warned there have also been ‘synthetic’ exits, where fund managers look to create liquidity through GP-led continuation funds.
What are the key considerations when selling illiquid assets?
