Single-Asset Continuation Vehicles Surge as GP-Led Market Deepens

What Happened Two lower middle-market private equity firms, Align Capital and L Squared, closed new single-asset continuation vehicles, according to Alternatives Watch. The report also cited William Blair research showing single-asset continuation vehicle volume rose 76% year over year to $60 billion in 2025, up from $34 billion. The significance goes beyond the individual deals. Continuation vehicles have moved from an opportunistic liquidity tool to a mainstream capital solution for sponsors seeking more time to compound high-conviction assets while still offering liquidity to existing LPs. Why GP-Led Deals Keep Growing Traditional exit channels remain uneven, especially for quality assets that sponsors do not want to sell outright into an uncertain market. GP-led structures provide a way to reset hold periods, bring in new capital, and let legacy LPs choose between cashing out or rolling into the next phase of ownership. Single-asset CVs are becoming institutionalized across the middle market Transaction growth suggests buyer appetite remains strong for concentrated, underwritten assets LP election dynamics remain central to pricing, fairness, and process credibility Continuation vehicles are no longer a niche workaround; they are now a core part of private equity liquidity architecture. Why This Matters for Private Markets The growth of GP-led secondaries is reshaping how sponsors manage duration and how LPs access liquidity. For private-market participants, this is one of the clearest signs that secondary capital is becoming structural rather than cyclical.