Deals

Rising acceptance of continuation funds could drive further growth in the GP-led space, industry participants said at PEI Group’s NEXUS 2025 event in Orlando last week.

Four out of NYCRS’ five pension systems are selling a more than $5.5bn portfolio to Blackstone Strategic Partners in a deal set to close at the end of March.

GPs are looking to hold on to their prized assets for longer than ever, but repeated continuation vehicles are bound to invite questions from existing and prospective investors.

The European mid-market firm, which has £11bn in AUM, is looking to move four UK-based assets into a new vehicle, Secondaries Investor understands.

As traditional private equity houses enter the secondaries market en masse, more GPs are building up their capabilities to run ‘DIY’ continuation vehicle processes in-house.

Late last year, it emerged TowerBrook had used a continuation fund in a transaction to delist its portfolio company R1 RCM from NASDAQ.

While $1bn portfolios are a more common factor in the market today, New York City’s sale stands apart as among the largest of all time.

Active GP members in the New Mountain team will roll all of their proceeds into the CV, according to LP documents.

Last year saw 70 continuation vehicles close, with scores more hitting the market, according to data gathered by Secondaries Investor.

Continuation funds represented about 13% of sponsor-backed exit volume last year, the report said, up from 12% in 2023, according to BlackRock’s 2024 activity report.