Private Equity’s Continuation Vehicle Boom

North American private equity exits reached $644.4B in 2025, driven by IPOs like Venture Global ($58B), and may hit $1T by year-end, per Secondaries Investor. Europe trails with €8.3B in IPOs, showing a transatlantic gap. Low exit counts signal ongoing challenges, as GPs face pressure for distributions.

Private equity firms like Bain Capital and KKR use continuation vehicles (CVs) and CV-squareds to hold assets longer amid a deal drought, per Bloomberg. Some, like Revelstoke, face LP resistance, while Accel-KKR raised $1.9B for a CV-squared. Firms now borrow against CV commitments, raising conflict concerns. LPs demand clear valuations and disclosures to avoid structural risks. But who has the leverage on terms?

The securities laws require robust disclosures and LP consent for CV conflicts. Sabal Law PLLC leverages regulatory experience with the SEC to design compliant CV structures for private equity and co-investments, with flexible fees for emerging managers and non-U.S. fund managers operating with ERA status. Schedule a Consultation to manage liquidity and keep GPs & LPs aligned!

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