NLC says secondary market heads toward $250 billion in 2026, boosting fund finance demand
XLF•Secondary activity drives financing demand
Secondaries activity tracked toward $250 billion in 2026, driving financing demand for continuation vehicles, secondary acquisitions, and back-leverage.
NLC sees private markets sentiment recovering
In its Q2 2026 fund finance report, NLC flagged a sentiment recovery in private markets led by larger managers with stronger DPI.
Exit conditions improved, though gains stayed concentrated in larger assets, keeping fundraising pressure on managers facing slower distributions.
Regulatory visibility and higher rates shape lender focus
Regulatory data increased visibility into bank fund finance exposure, raising scrutiny on balance-sheet capacity and supporting lender-base diversification.
Higher-for-longer rates shifted focus to maturity flexibility, capacity, and refinancing; NLC also reported $13 billion in funded deployments by Q2 2026.
