The Evolution of Private Market Liquidity: A New Hybrid Between VC and Investment Banking

Private market liquidity has undergone a dramatic transformation over the past two decades. What began as a fragmented, opaque, and insider-driven process has slowly evolved into a more structured and founder-aligned ecosystem. In this post, we’ll walk through the key phases in that evolution—from the Wild West of secondary deals to the rise (and fall) of private marketplaces, the emergence of institutional funds, and the advent of structured liquidity windows.

By Diwan Capital · 20 March 2026