What's happened
Private equity secondaries are booming, surpassing $200 billion in 2025, amid a slowdown in the life sciences real estate sector due to funding and oversupply issues. Meanwhile, UK plans for Harwell East aim to boost science infrastructure, signaling ongoing investment in innovation hubs.
What's behind the headline?
Market Dynamics and Sector Contrasts
The surge in secondaries, projected to exceed $200 billion in 2025, reflects a strategic shift in private equity, providing liquidity options amid a sluggish deal market. This boom benefits investors seeking to exit or extend their holdings, but it also signals underlying stress in traditional deal flow.
In contrast, the life sciences real estate sector faces a significant correction. Record vacancy rates—up to 35% in top markets like Boston, San Diego, and the Bay Area—highlight oversupply and funding shortages. The decline in federal research grants and venture capital, combined with a construction boom, has created a mismatch between supply and demand.
The UK’s Harwell East project exemplifies ongoing investment in science infrastructure, aiming to create 4.5 million sq ft of labs and up to 400 homes. This initiative seeks to address the sector’s space shortages and foster innovation, aligning with government ambitions to boost regional growth through science and technology.
Overall, these stories illustrate a broader economic recalibration: private markets are adjusting to liquidity needs, while the science sector grapples with funding and space constraints. Both trends will shape investment strategies and policy decisions in the coming years, with the potential to influence broader economic resilience.
What the papers say
Bloomberg reports on the booming secondaries market, which is now on pace to surpass $200 billion in 2025, driven by private equity firms seeking liquidity options amid a stagnant deal environment. Business Insider UK highlights the struggles of the life sciences real estate sector, with record vacancy rates and funding shortages leading to asset sales and delayed expansions. The same source details UK plans for Harwell East, a major science hub development, aiming to create extensive lab and manufacturing space alongside housing, to support innovation and regional growth. These contrasting narratives reveal a shift in investment focus: while private equity adapts to market pressures, the UK government continues to invest heavily in science infrastructure to sustain long-term growth.
How we got here
The private equity secondaries market has grown rapidly since 2020, driven by firms seeking liquidity and extending asset holding periods. Simultaneously, the life sciences real estate sector experienced a downturn due to reduced federal and venture funding, leading to record vacancies and asset sales. The UK government and Crown Estate are investing in science infrastructure, notably with plans for Harwell East, to support innovation and address space shortages.
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