MeltX and Mallowstreet research shows that, while running off illiquid assets is the preferred option when timelines permit, secondary platforms are the leading disposal route when a sale is necessary.

Most advisers and professional trustees expect defined benefit (DB) schemes to manage illiquid exposure through natural run-off rather than disposal, with 88% selecting this as the most likely avenue for schemes with sufficient time.

Where a sale is required, the survey shows that various liquidity options are available, including: secondary platforms, broker-led sales, in-specie transfers to insurers, deferred buy-out premiums, sponsor loans and GP-led solutions. The most popular sales channel highlighted by respondents were secondary platforms, with 63% selecting this option.

The survey had 42 respondents from major advisers and professional trustee firms, representing a combined c.£928bn in UK DB assets.

Using the responses, it is estimated that UK pension funds are expected to sell £4bn-£8bn of private markets assets on the secondary market over 2026. This could represent 5%-10% of global LP-led secondary market sales, if 2026 secondary market activity is in line with 2025.

“It’s no secret that UK DB schemes are continuing to look for liquidity from private markets as they de-risk. Our innovative online platform can help pension funds to achieve the liquidity they need with more transparency, efficiency and lower costs than traditional approaches available.” said Stuart Hanson, Co-founder of MeltX.

“Perhaps the most interesting finding is that better secondary-market infrastructure doesn’t just support exits — it could enable future investment. If liquidity is credible and accessible, DB schemes are more likely to stay invested in private markets rather than reduce exposure altogether,” added Ally Georgieva, Head of Insight at mallowstreet.

The full report is available via the link below:

https://mallowstreet.com/Research/Report/IlliquidAssetsReport2025