Benjamin Carper

And continuation vehicles just allow sponsors to have more time and capital to prosecute those already working strategies.

Continuation vehicles are a pretty steady source of liquidity and not just liquidity, but cash liquidity for LPs.

So about

A little bit shy of 20% of all private equity distributions in 2025 are happening via continuation vehicle transactions.

So check one for LPs who haven't seen a lot of liquidity.

They also allow LPs to compound winners.

in their portfolio and keep that capital invested over time versus see one sponsor sell a company to another sponsor and maybe in their exact same roster of managers.

And quite often, LPs are committing capital to secondary funds and continuation vehicle focused funds because they see them as a

as a gateway to getting access to really high quality companies featuring superior transaction dynamics and alignment dynamics with both sponsors who are supporting the continuation vehicles as well as management teams at the portfolio companies underneath of them.

Now, there is some cognitive dissonance to your point because continuation vehicles have created a portfolio management

consideration and motion, frankly, that didn't exist for many LPs 10 years ago.

If you were an LP with 100 different line items in your primary fund roster 10 years ago, then you may see one continuation vehicle election in your entire roster of managers.

Going back to the stat that I shared that continuation vehicles are representing 15 to 20% of all private equity exits,

You're now looking at a dozen plus LP elections in your portfolio.

Yeah.

No.

That's right.

I think that's where a lot of the consternation comes from for LPs is how do they handle that new responsibility in their portfolios?

There are a few different ways that these continuation vehicles can be

priced.