Over the past decade, private equity benefited from a generally supportive exit environment. Low interest rates, accessible financing, and steadily rising valuations made it possible to bring strong portfolio companies to market with relatively little friction. Firms could crystallize gains, return capital to investors, and redeploy quickly into new opportunities.
Today, the environment is different.
Higher financing costs, tighter credit, and a prolonged slowdown in IPO markets have reduced overall exit activity. Holding periods across buyout funds have lengthened, and many assets remain fundamentally strong but difficult to exit at acceptable valuations. The result is a growing overhang of ageing companies across the industry. (Some critics call these “zombie” companies, but I wouldn’t go there.)
Continuation vehicles: win-win-win for all
Against that backdrop, continuation vehicles (“CVs”), once viewed as niche or tactical, have moved closer to the center of the private equity playbook. In 2025, the GP-led secondary market had grown to approximately $105 billion, with CVs accounting for roughly 84%.
