The secondary market plays a unique role in the private funds ecosystem as a pressure release valve that helps to stabilize the industry when the economy falters and to turbocharge it when markets are strong. That means a lot can be gleaned about the status of the economy and the health of the industry from the volume of secondary transactions, wrinkles in how they are structured and the terms negotiated between buyers and sellers. The state of the secondary market was among several areas of the private funds industry addressed at Morgan Lewis’ recent Private Fund Investors Roundtable, which featured Morgan Lewis attorneys Courtney C. Nowell, John D. Cleaver and Joseph D. Zargari, as well as special guest Adrian Millan, a partner in PJT Park Hill. This first article in a two-part series breaks down some of the market dynamics and pressures driving trends in several key areas, as well as some of the latest developments in the secondary market. The second article will consider how co‑investment opportunities are being impacted by the impending global recession, as well as offer an update on recent regulatory efforts at the state and federal level as to environmental, social and governance investing. For further commentary from Morgan Lewis attorneys, see our two-part series: “Attorneys Offer LP Perspective on Negotiating PE Terms and Structuring Bespoke Issues” (Feb. 1, 2022); and “Attorneys Discuss Tax Issues, China, Trade and Sanctions” (Feb. 8, 2022).