Neuberger Berman is approaching the first close of its new $5bn secondary fund, as investor demand for liquidity solutions drives record activity in the secondaries market, Bloomberg reports.

The New York-based manager is expected to raise at least half the target by the end of 2025, building on $4bn already raised this year for a related strategy. Neuberger executives will also commit a minimum of $50m to the vehicle.

The latest fund will invest in a mix of limited partner and general partner-led transactions, focusing on middle-market companies. It follows a predecessor fund that closed on $4.9bn in 2022 and will run alongside the firm’s GP-led continuation strategy. Neuberger managed about $22bn in secondary assets as of March 2025.

Secondary funds continue to attract capital despite a challenging fundraising environment for private markets. Bain & Co estimates such vehicles raised $43bn in the first half of 2025, while Jefferies reported transaction volume surged 51% year-on-year to a record $103bn.

Neuberger’s strategy targets smaller, more concentrated portfolios, designed to generate stronger returns while providing liquidity options for both LPs and GPs.

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