Ares Deploys $850M Continuation Vehicle for Convergint Amid Record $240B Secondaries Market

Ares Management Closes $850M Convergint Continuation Vehicle With Goldman and Leonard Green Ares Management has deployed an $850 million continuation fund strategy for Convergint Technologies, a leading provider of electronic security and facility services. Leonard Green & Partners served as lead investor in the vehicle, with Goldman Sachs' alternatives business also participating. The structure allows Ares to retain exposure to Convergint while providing liquidity to existing fund investors — a textbook example of the GP-led secondary market's growing role in private equity portfolio management. Transaction Details and Market Context Structure: Ares confirmed that one of its private equity funds made a substantial new investment in Convergint, with its funds retaining a shared control position alongside Leonard Green and Harvest Partners. Investor choice: Consistent with market norms, existing LPs were offered the option to exit at par or roll their exposure into the continuation vehicle — a feature that Antony Anastasiadis of Hamilton Lane notes typically sees 60-80% of LPs electing liquidity. Market backdrop: The deal arrives as the secondaries market posted a record $240 billion in total volume in 2025, per Jefferies' Global Secondary Market Review, with continuation funds representing approximately 20% of all private market exits. Fee evolution: Management fees on continuation vehicles have declined materially in recent years, often falling below 1% of invested capital with more tiered performance hurdles than blind-pool primaries — improving economics for rolling LPs. GP alignment: GP commitments in continuation vehicles now average approximately 8% of invested capital, versus 1-2% in traditional fund structures — signaling meaningful alignment with investors who choose to roll exposure. "Continuation vehicles are increasingly used to extend ownership of high-performing assets while returning capital to LPs — they are not solely a product of a weak M&A environment." — Hamilton Lane Why This Matters for Private Markets The Ares-Convergint transaction illustrates the maturation of GP-led secondaries as a mainstream portfolio tool for blue-chip sponsors managing assets through multi-year market cycles. With Goldman Sachs Alternatives participating alongside Leonard Green, the deal signals that the most sophisticated institutional capital is now regularly backing continuation structures — providing a quality signal that should help reduce LP skepticism over time. As continuation funds become an expected feature of the exit landscape — accounting for one-in-five private market exits — institutional investors that develop systematic frameworks for evaluating and participating in these structures will be better positioned to optimize both liquidity and long-term return outcomes.