Private Equity Turns to Continuation Vehicles: CVs Surge to 84% of GP-Led Secondary Activity (2025)

Private equity is shifting its playbook amid higher financing costs, tighter credit, and a slowdown in IPOs, which have lengthened holding periods and increased the "zombie" overhang of ageing assets. To address these pressures, continuation vehicles (CVs) are rising to the core of the private equity strategy. As of 2025, the GP-led secondary market totaled about $105 billion, with CVs accounting for roughly 84%. CVs allow GPs to realize liquidity on a fund while maintaining exposure to high-conviction assets, and they give LPs choice to take liquidity or roll exposure forward based on updated fundamentals. For portfolio companies, they preserve strategic momentum and management continuity. CVs are being used across a bifurcated market: trophy assets to extend ownership and pursue further value, and underperforming assets to provide time and potential capital for growth. This structure is especially valuable when broader fundraising is difficult, helping sponsors preserve fee bases and operating infrastructure while LPs maintain flexibility. Source: RJ PCA market intelligence as of January 2026.