In this recent ION Influencers fireside chat, Daniel Roddick, founder of Ely Place Partners, talked about the explosive growth of secondaries markets—particularly in private credit. With over two decades of experience in placement and secondary advisory, Roddick offers an insider’s perspective on how an asset class once considered peripheral has become central to institutional liquidity strategies and GP management.

Currently splitting his practice 50/50 between placements and GP-led secondaries—with half of that secondary work now in credit—Roddick provides invaluable insights into market dynamics, transaction structuring, and the human elements that drive successful deals.

Key Topics Discussed

1. The Secondaries Boom: Why Now?

Secondaries have defied the broader fundraising slump:

• While private equity fundraising volumes have fallen, secondary GPs have enjoyed remarkable success

• Growing AUM through both institutional fundraising and wealth channels (evergreen vehicles)

• Key drivers: Need for liquidity, pressure to demonstrate DPI, strong performance track records

• Investor appeal: Downside protection, visibility into underlying assets, diversification across vintages and line items

2. Market Segmentation: Specialization as Strategy

As more players enter the space, differentiation is critical:

• New entrants increasingly focus on specialized niches

• Specialist categories: Continuation vehicles, credit secondaries, infrastructure, asset-class-specific expertise

• Roddick’s observation: Some specialized areas remain undercapitalized—creating opportunity

• As an adviser, “we would still welcome more buyers into those spaces”

3. Scale vs. Nimbleness in Secondaries

The perennial question of size:

• Scale advantages: Brand recognition, ability to accommodate large LP tickets, fundraising momentum

• Nimble advantages: Adaptability to market evolution, ability to drive outsized returns without being “encumbered by size”

• Verdict: Both models can succeed, depending on strategy and execution

4. Credit Secondaries: The Fastest-Growing Segment

The numbers tell a striking story:

• 50-100% CAGR over the last three years

• 2025 volume estimated at $20 billion+ (approximately 10% of total secondaries market)

• Represents just 1% of credit AUM (vs. 2-3% turnover in private equity)

• Implication: Significant runway for continued growth

5. Drivers of Credit Secondaries Growth

LP-side drivers:

• Universal need for liquidity (strategic, regulatory, or liquidity-driven)

• Dedicated capital raised specifically for credit secondaries enables competitive pricing

GP-side evolution:

• Growing recognition that secondaries can proactively drive liquidity

• Opportunity to clear legacy funds

• Shift from passive investment strategy to active portfolio management

• U.S. leading in GP-led activity; European wave expected imminently

6. GP-Led Transactions: The Art of Continuation Vehicles

Roddick provides a masterclass in CV dynamics:

Private Equity CVs:

• Dominated by single or small number of outperforming assets

• Transfer at valuations generating returns for selling fund

Credit CVs:

• Often whole-fund solutions

• Pure liquidity exercise

• Old fund closed; CV holds all assets

Critical success factors:

• Quality assets AND quality GP track record

• Genuine liquidity need

• Clear rationale for GP maintaining management

• Alignment of buyers, sellers, and GP objectives

7. The Adviser’s Role: Testing and Alignment

Roddick emphasizes the extensive pre-launch work:

• Stress-testing transaction rationale

• Engaging with LPAC to ensure transparency and buy-in

• Avoiding “bad surprises” when going to market

• Matching objectives across potentially divided LP bases

“The bulk of the time in these transactions is spent ahead of launch.”

8. GP Economics: Alignment Through Structure

Evolution in deal terms:

• Increased requirements: Buyers expect GP capital roll and carry roll

• Downside alignment: “Dip their hand in their pockets” to demonstrate conviction

• Upside potential: Staged return targets can generate outsized carry for outperformance

• Economics increasingly tailored to specific portfolios

9. Speed vs. Complexity: The Right Pace

Counterintuitive insight: Speed can hinder success

• Rushing into a process without preparation creates risk

• Buyers need time to underwrite the GP (not just the assets)

• Unfamiliar managers require “remarketing” to buyer community

• Documentation and data preparation take time

• Process itself follows fixed timeline—but only after proper preparation

10. Transparency and Data Demands

The 50/50 rule of secondary underwriting:

• 50%: Understanding the assets

• 50%: Backing the GP

• Good GPs are already transparent with existing LPs

• Multi-asset credit transactions require trust in GP’s management capabilities

• Buyers won’t deep-dive every line item—they bet on the manager

11. Red Flags and Qualitative Assessment

Beyond performance data, buyers evaluate:

• Blue-chip status and track record longevity

• Existing relationships with buyer community

• For newer managers: Process similar to primary fundraising

• Team dynamics and stability

• Trustworthiness for long-term asset management

12. The Convergence of Secondaries and Fundraising

Roddick’s dual practice reveals important synergies:

• Secondary transactions increasingly serve fundraising purposes

• GPs use CVs to: grow AUM, manage LP base, transition out of unsupportive LPs, raise new capital alongside secondaries

• Most secondary discussions now assume concurrent capital raising

• Investment banks developing in-house secondary expertise—competition intensifying

Future Outlook: Rapid-Fire Predictions

Credit Secondaries Growth

“For sure in the next twelve months… I expect huge growth from the credit side.”

Relative to private equity: MORE growth in near term

Manager Consolidation

Steady growth prediction:

• Scale remains important for fundraising

• GPs will continue seeking scale through consolidation

Fundraising Environment

Optimistic outlook for next three years:

• M&A markets expected to improve

• Liquidity returning to system

• Secondary markets playing crucial role

• Distributions to LPs will drive renewed fundraising

Technology Disruption

Honest assessment:

• Transactions too complex and human for full replacement

• Open to AI making processes easier

• “I don’t think it will be replaced”

Key timestamps:

00:06 Introduction to the Fireside Chat
00:37 Background of Daniel Roddick and Ely Place Partners
01:18 The Rise of Secondaries in Investment Portfolios
02:57 Distinguishing Unique Players in the Secondary Market
04:07 Market Evolution in Private Equity and Credit
06:19 Drivers of Growth in Private Credit Secondaries
07:47 Understanding GP Led Transactions
09:35 Advisory Role in Continuation Vehicles
15:29 Transparency and Data in Private Markets
18:03 Evolving Ecosystem of GPs and Intermediaries
20:19 Future Growth of Secondaries in Credit vs. Private Equity
21:31 Outlook on Fundraising Markets
22:29 Conclusion and Closing Remarks