E311: How Continuation Vehicles Quietly Reshaped Private Equity

Continuation vehicles and their increasing prevalence in private equity are discussed. Jefferies' Benjamin Carper explains that continuation vehicles help sponsors manage companies that don't fit the typical 10-year private equity fund lifecycle, noting the market will reach over $110 billion in volume in 2025. These vehicles offer liquidity for LPs and allow them to continue investing in successful companies, though they also create portfolio management challenges. Carper notes that deals attractive to continuation vehicle investors typically involve mid-market companies with recurring revenues and growth potential, and that the majority of continuation vehicles are priced via auctions targeting CV investors.