New 2ND Capital has raised close to $950 million so far for its latest fund focused on GP-led secondary deals, a form of PE deal that has exploded in popularity amid continuing liquidity constraints for fund managers and investors, according to two people familiar with the matter.
The New York-based fund manager, led by former AlpInvest Partners executives, held a first close on $800 million in December, the people said.
New 2ND Capital Fund IV has a hard cap of $1.5 billion, they added.
New 2ND was launched in 2016 by Tjarko Hektor, a former managing director at AlpInvest, a subsidiary of The Carlyle Group focused on private equity fund investments, secondaries and co-investments.
The firm, which declined to comment on the fundraising, specializes in middle-market transactions, typically ranging from $10 million to $500 million, according to its website, and managed about $2.4 billion in assets as of the end of 2025.
In January, New 2ND anchored a single-asset continuation fund, raised by Boyne Capital, a Florida-based PE firm focused on lower-middle-market companies, to extend its ownership of Pilot Energy, a US-based energy advisory company. Last October, the secondary investor closed a deal to finance Astara Capital Partners’ continuation fund for a flexible packaging manufacturer.
New 2ND has returned about $500 million to investors across its two predecessor vehicles—New 2ND Capital Fund II and Fund III, the people said, helping drive strong investor interest in Fund IV.
Fund II closed in 2021 with about $572 million in capital commitments, according to PitchBook data. Fund III wrapped up in 2024 with over $875 million, including co-investment capital.
Dealmaking in the secondary market hit new highs in 2025. Investment bank Evercore, the most active broker of secondary deals, tracked $226 billion in such deals in 2025, a 41% year-over-year increase. GP-led secondaries were a key driver of that momentum, increasing 51% year-over-year to reach $106 billion.
Activity in the GP-led market has partly been driven by a lackluster M&A and IPO market, triggered by a sharp rise in interest rates in 2022, which created a pricing gap between buyers and sellers that has yet to fully close.
Reduced exit activity has choked off cash distributions back to limited partners and caused fund managers to have to hold companies for longer than the typical three- to five-year period that long characterized PE ownership.
On its website, New 2ND describes GP-led deals as a way to provide liquidity to stakeholders, realign the ownership structures of businesses and help managers “extend, recapitalize and find that best path forward.”
Secondary strategies proved to be a bright spot for private market fundraising in recent years. Investors poured roughly $119.9 billion into secondary-focused funds last year, beating the previous record of $105.7 billion set in 2024, according to PitchBook data.
Still, big deal volume means the market remains poorly capitalized. The capital available to do deals, when measured as a proportion of annual deal flow over the prior 12 months, stood at around 1.2x in January, according to Evercore. This figure was 1.75x at the end of 2024.
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