From Niche to Mainstream

Continuation Vehicles Redefine Private Markets

26 February 2026 

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Continuation vehicles (CVs) have transitioned from a niche liquidity solution to a cornerstone of private market strategy. Initially associated with legacy assets, CVs now enable GPs to extend ownership of high-performing companies while offering LPs flexible exit options. This evolution reflects broader market dynamics, disrupted exit environments, heightened liquidity needs, and the pursuit of long-term value creation. In 2025, global GP-led transaction volumes reached $115 billion, a 53% increase from the year-ago.1

In this article we explore how CVs are reshaping secondaries across equity and credit markets and what institutional investors should consider when evaluating these transactions. Beyond the mechanics, we examine the strategic implications for portfolio construction, liquidity planning, and risk management. There are many nuances to a secondaries transaction and being able to grasp them fully and structure a deal that works for both buyer and seller is of paramount importance.  

Table 1: GP-Led Annual Transaction Volume ($B)
Chart: In 2025, transaction volumes in global continuation vehicles are estimated to have hit $100 billion, more than doubling since 2020.
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Source: Jeffries, 2025 Global Secondary Market Review: Another Record-Breaking Year
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Chart: In 2025, transaction volumes in global continuation vehicles are estimated to have hit $100 billion, more than doubling since 2020.
Source: Jeffries, 2025 Global Secondary Market Review: Another Record-Breaking Year
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Key Themes Shaping the CV Landscape

Market Growth Drivers

 

CVs are no longer a niche play, they’ve become a strategic lever for GPs and LPs alike. Disrupted exit markets, inflationary pressures, and the need for liquidity have accelerated adoption. For investors, this means access to high-performing assets without the volatility of traditional exits.

Key Risks and Guardrails

 

Dual fiduciary duties create inherent tension: GPs must balance fair pricing for selling LPs with their own incentives to extend ownership. Competitive bidding, independent valuations, and meaningful GP commitments are essential to ensure alignment and protect investor interests.

Institutional Investor Considerations

 

CVs may offer a blend of liquidity and long-term value creation. They can help mitigate the J-curve effect, provide exposure to seasoned portfolios, and diversify into private credit, where volumes are growing at a 46% CAGR since 2020.2 For institutions, the question isn’t if CVs fit into the portfolio, but how to underwrite them effectively.

Footnotes:

1 Jefferies, H1 2025 Global Secondary Market Review, July 2025

2 Evercore Private Capital Advisory, “FY 2024 Secondary Market Review” (February 2025) and Evercore Private Capital Advisory, “H1 2025 Secondary Market Review” ( July 2025), Evercore Private Capital Advisory, “H1 2025 Secondary Market Review” ( July 2025). Dry powder, June 2025.