For years, the IPO has been the golden ticket. But in 2025, the tide has turned. Sophisticated secondary markets are intervening to give early employees, founders and investors the liquidity window they’ve been waiting for without relying on public markets that could take years to reopen.
The private equity secondary market is becoming the pressure valve of the ecosystem, transforming how capital flows, how startups navigate long private lifecyles and how investors handle exposure.
Here’s why secondaries matter now, how new liquidity paths are evolving across Southeast Asia, and what investors and syndicate leads should monitor as the market enters a new era.
IPO Freeze Driving New Paths to Liquidity
Southeast Asia’s public markets underscore just how tight the exit window has become. According to the State of Exits in Southeast Asia 2025 report, the region’s tech IPO market fell to a nine-year low in 2024, raising only $3 billion across 122 listings, down from $5.8 billion in 2023.
That 48% contraction pushed late-stage founders and early employees to reconsider how long they can realistically wait for a public debut. The Grab Singapore listing remains the region’s most high-profile example of how unpredictable and volatile public outcomes can be, even for category-defining companies.
With IPO timelines stretching and valuations fluctuating, liquidity is increasingly shifting to the private equity secondary market, where deals can move faster and stakeholders retain more control.
The private equity secondary market solves two core problems at once. First, it provides sellers (founders, early investors, employees) with immediate liquidity, and it offers buyers access to mature, de-risked assets.
A crucial dynamic now is continuation funds, GP-led restructurings, and structured SPVs, which let teams extend runways without a fire sale. Buyers in secondary deals gain clearer performance history and a shorter timeline to distributions, a significant draw for funds and family offices looking to redeploy capital faster.
Recent insights suggest that SEA’s exit landscape now prioritizes structured secondary solutions over the traditional IPO-first mindset. This aligns with this analysis, which observed that secondary exits are set to accelerate in 2025 as more funds reach the end of their lifecycle and founders increasingly prioritise earlier liquidity.
Funding Winter Reshaping Investor Behaviour
When new primary funding slows, investors shift from growth-at-all-costs to capital preservation and measured exits. That shift increases demand for secondaries as LPs seek to rebalance and generate cash returns.
The private equity secondary market supports capital recycling, enabling VCs and angels to monetise winners early and redeploy capital into new opportunities.
This change also affects valuations. Secondaries often trade at discounts to perceived NAV, creating entry opportunities for buyers but also compression for sellers who need immediate liquidity. Smart syndicate leads and SPV managers can bridge that gap with tailored deal terms and tranche structures.
Key Opportunities in SEA’s Secondary Market
- Access to mature assets: Buyers acquire stakes in companies with proven revenue and product-market fit.
- Attractive pricing windows: End-of-fund lifecycle LPs often accept meaningful discounts (commonly 20–40%) to exit.
- Capital recycling: Early investors unlock capital for follow-on investments in the region.
- Cap-table optimisation: Secondaries let startups clean up complex cap tables and onboard aligned long-term investors.
If your syndicate needs a clean, compliant SPV to execute a secondary or roll program, talk to our expert to see how we can help accelerate liquidity events.
How Secondaries Unlock Value for Founders, Employees, and Investors
For Founders
Secondaries deliver personal liquidity without forcing a premature sale of the company. With structured SPVs or GP-led continuation funds, founders can realise cash while preserving upside and control.
For Employees
Employees convert vested options into meaningful cash, improving retention and reducing churn risk. A predictable liquidity pathway increases morale and employer brand.
For Early Investors
Secondaries allow early angels and VCs to realise returns sooner and recycle capital. They also support portfolio rebalancing and risk de-leveraging ahead of new fundraises.
Mechanisms that Work
- Secondary share sales let sellers transfer ownership directly to buyers.
- GP-led continuation funds/SPVs extend the holding periods of high-performing funds while giving LPs a choice.
- Syndicated buys pool institutional capital for large, complex portfolios.
Regulatory & Market Signals
Singapore’s regulator is actively preparing for broader retail access to private markets. This move is a sign of mainstreaming private capital structures in the region.
As Reuters reported, the Monetary Authority of Singapore said, “It will equip investors with a wider variety of choices in building well-diversified portfolios, while also creating a pathway for the potential listing of private market investment funds,” MAS said.
That regulatory direction reduces structural friction for SPVs and secondary vehicles domiciled in Singapore, improving tax clarity and investor confidence.
Practical Playbook for Syndicate Leads and SPV Managers
- Map liquidity needs → time the sale windows. Prioritise employees and LPs with urgent needs.
- Choose the right structure. Use direct secondaries for small trades, SPVs or continuation funds for complex portfolios.
- Price defensibly. Expect discounts; structure earnouts or staged payouts when needed.
- Communicate cap-table outcomes. Clear communication retains founder alignment and attracts future strategic investors.
Final Thoughts
The private equity secondary market has moved from a back-channel tactic to a mainstream solution. For SEA startups and investors, secondaries plus SPV strategies offer a pragmatic path to liquidity that keeps companies focused on growth while satisfying stakeholder cash needs. Regulators and capital allocators are acknowledging this reality and the result is a more fluid, resilient private market.
Ready to execute a secondary or set up an SPV that prioritises speed, compliance, and investor clarity? Book a call with us or get in touch with us at info@auptimate.com, and one of our experts will be more than happy to help.
