Continuation funds

secondary transactions have grown significantly providing liquidity to long-term illiquid asset classes. Indeed, despite private fund-raising contraction, across the private market, secondaries fundraising almost doubled in 2023. In 2024, it is expected that the global secondary private market will reach approximately 140 billion dollars in size.

Typically, when a private equity fund approaches its contractual culmination point, it will seek to sell its assets, but this may not be possible or desirable at that moment. Establishing a continuation fund is an alternative, Laurent Capolaghi, partner and private equity leader at EY Luxembourg, explained in this Q&A. One third of the top 50 PE houses are considering this alternative option, he estimates.