Continuation Vehicles Dominate GP-Led Secondaries, Capturing 89% of Volume at $115 Billion

Continuation Vehicles Emerge as the Dominant GP Exit Tool In an environment where traditional exit paths — IPOs and strategic M&A — remain severely constrained, General Partners have turned en masse to continuation vehicles (CVs) as their preferred liquidity mechanism. In 2025, GP-led secondary transactions totaled $115 billion , with CVs accounting for 89% of GP-led volume and roughly 43% of the entire secondary market. The structure has evolved from a niche instrument into a mainstream portfolio management tool. Why GPs Are Choosing CVs CVs allow sponsors to transfer select high-quality assets from aging funds into new vehicles, offering existing LPs the choice to roll over or cash out while bringing in new secondary investors at current valuations. Key drivers of the boom: Exit desert: Distributions as a percentage of NAV trailed historical norms by ~15% between 2022 and 2024 (28% vs. 13% historical) DPI pressure: DPI for 2018–2021 vintages is running 0.2x below target, forcing GPs to find creative liquidity solutions Fundraising dependency: For every $3 of targeted fundraising, only $1 of capital is currently available — the worst ratio since the Global Financial Crisis Asset quality preservation: CVs let GPs hold trophy assets beyond traditional fund life without forced sale at depressed valuations Structural Shift or Liquidity Patch? The critical debate in the secondaries industry is whether the CV boom reflects a permanent structural change to private markets architecture, or merely a temporary response to a cyclical exit drought. Proponents argue that CVs unlock a fundamentally better capital structure for long-duration assets. Skeptics warn of conflicts of interest — GPs selecting which assets to retain while setting the transfer price — and of LP fatigue from repeated re-up requests. "Buyout fundraising has reached its lowest level relative to NAV since the GFC. CVs are no longer optional — they are a survival mechanism for GPs." — Bluemetric Wealth Advisory, CAIA Why This Matters for Private Markets For secondary buyers, the explosion in GP-led deal flow creates both opportunity and pricing complexity. CV transactions require deep due diligence on asset quality, GP alignment, and transfer pricing fairness. As the market matures, secondary specialists with GP-led underwriting expertise are commanding premium deal access — and premium returns. The $115 billion GP-led market of 2025 is widely expected to grow further in 2026 as the exit backlog continues to age.