Public Market Exits Remain Tepid as Private Equity and Venture Capital Investors Shift to Secondaries

Private Equity and Venture Capital Exits Hit a Dry Spell as Investors Opt for Secondary Sales

The public exit pipeline for private equity and venture capital funds has experienced a significant decline, with institutional investors instead choosing to sell positions directly to each other. The latest IVCA-EY monthly roundup reveals a shift in the market, with total PE/VC exits reaching $730 million across 15 transactions in April 2026. This represents an 18% value increase from the $619 million recorded in the same month last year.

Private Secondary Sales Dominate

Private secondary sales dominated the monthly tally, with just four transactions bringing in $430 million, accounting for 59% of the total exit value for the entire month. This trend is a significant departure from traditional public routes, which are barely keeping up. Initial public offerings brought in a modest $120 million, with the bulk of that coming from the listing of the Citius Transnet Investment Trust InvIT. Open market sales on the main boards were equally quiet, bringing in only $100 million.

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Public Market Channels Struggle

Public market channels accounted for less than a third of the month's total exit liquidity. The reasons for this defensive posture are not surprising, given the cautious sentiment in the public markets. Fresh PE/VC primary investments plunged 49% year-on-year to just $2.7 billion, with deal count dropping by 38% to 83 transactions. This makes April 2026 the lowest monthly primary investment period the street has witnessed in 29 months.

Reasons for the Shift

The reasons for the shift towards private secondary sales are familiar to the markets. The Indian Rupee has been under macroeconomic pressure, hovering near the historic INR 96/USD mark. A highly mixed Q4 corporate earnings season has kept a lid on broader market sentiment. Most importantly, the valuation mismatch between buyers and sellers remains wide.

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Private Secondary Transactions Offer Certainty and Speed

In a volatile public environment, investors are prioritizing certainty, speed, and strict pricing discipline. Private secondary transactions give them exactly that. They bypass the regulatory hurdles, market timing risks, and price erosion that can come with public block sales.

Domestic Platforms Fill the Liquidity Vacuum

Domestic platforms, institutional continuation funds, and listed REITs have grown up and are stepping directly into the liquidity vacuum. They are becoming reliable, alternative capital providers when the public window closes. Public market appetite may be struggling to find its footing as we enter this new fiscal, and experts do not expect this trend to reverse anytime soon. At least until valuation spreads narrow on the main boards, secondary deals will remain the preferred playbook for institutional managers looking to book real cash returns.