In a transaction that underscores shifting dynamics within the private capital industry, Swedish buyout firm EQT completed its acquisition of secondaries market specialist Coller Capital in late August, marking one of the largest deals in the sector valued at up to $3.7 billion. The agreement, originally struck in December 2025, required intense negotiations and timely execution amid concerns surrounding confidentiality due to EQT’s publicly listed status.

EQT paid $3.2 billion upfront with the potential for an additional $500 million contingent on business performance. The deal was structured predominantly through shares rather than cash, adding layers of complexity including cross-border tax considerations and regulatory approvals across jurisdictions. Both parties were keen to preserve the expertise of existing personnel, aiming to avoid prolonged uncertainty over employment that can accompany major mergers.

This acquisition reflects growing investor demand for liquidity within traditionally long-locked private capital investments. Institutional investors such as pension funds and endowments have historically committed substantial sums to private equity, private debt, infrastructure, and similar assets, attracted by higher returns in an era of low interest rates following the 2008 financial crisis. However, market disruptions notably during the early stages of the COVID-19 pandemic and the technology sector downturn in 2022 have increased appetite for quicker access to invested capital.

Additionally, the private credit market has faced scrutiny following the failures of subprime auto lender Tricolour Holdings and car parts supplier First Brands Group, raising questions about lending standards. In response, there has been a growth in higher-liquidity investment vehicles—including evergreen funds, which provide limited periodic liquidity—to approximately 1.5 to 2 percent of the roughly $24 trillion global private capital market in 2025, up from 0.5 to 1 percent in 2020, according to consultancy estimates.

Secondary market transactions such as the Coller Capital deal enable investors to sell their stakes in funds prior to maturity, often at a discount, addressing delayed return concerns. EQT’s former general counsel Paul Dali described secondaries as a solution to the sector’s liquidity challenges, emphasizing investors’ frustration with prolonged wait times for returns.

Legal advisors are also innovating to accommodate evolving investor preferences. Law firms have assisted in designing structures that facilitate easier redemption for lenders, addressing the issue of static investor pools. Furthermore, new fund structures aim to balance liquidity with sufficient protection.

An example of regulatory and structural innovation includes efforts to utilize the London Stock Exchange’s Private Securities Market (PSM), enabled by the government’s Private Intermittent Securities and Capital Exchange System (Pisces), which offers regulated trading of private company shares. Some private companies, however, are hesitant to list directly on Pisces due to director liabilities and management burdens involved. To address this, a Luxembourg-based securitization vehicle, known as a TPEIC, was created to hold private company shares and allow trading on the London market through a distinct management team. This model was first used in a £1.3 billion transaction involving Oxford Science Enterprises, a portfolio focused on deep technology, artificial intelligence, quantum computing, and life sciences.

While complex and resource-intensive to develop, such structural innovations seek to provide investors with clearer exit options, potentially encouraging greater participation in private capital markets. European regulators have expressed interest in exploring similar systems, highlighting broader implications for the industry’s future liquidity and transparency.