The private equity market has evolved to fit the needs of investors and sponsors. Investors, for example, can opt to co-invest alongside financial sponsors in specific target companies rather than investing in the broader fund itself. The chart on the left  shows that co-investments (gray) may provide both a return and fee advantage in a private equity fund.
The chart on the right looks at secondary market transactions, in which one private equity manager may sell a target to another private equity manager to raise liquidity, exit a position, modify exposures, or lock in gains. Although secondaries have fallen sharply during the pandemic, they have held up better thus far than in the financial crisis.