In a recent interview with Mergers & Acquisitions, Joseph B. Marks, Senior Managing Director and Head of Secondaries at Capital Dynamics, shares his insights on the evolving landscape of continuation vehicles (CVs). He discusses the distinctions between single-asset and multi-asset transactions, noting that while multi-asset CVs can provide diversification and scale, they also demand heightened due diligence and stronger alignment between general partners (GPs) and investors.
The article explores how continuation vehicles have emerged as a vital tool for private equity managers navigating a constrained exit environment. These structures enable GPs to retain ownership of high-performing portfolio companies while offering liquidity options to Limited Partners (LPs) seeking an exit. This growing trend reflects a broader shift across private markets, as fund managers balance investor expectations with the goal of capturing additional value from mature assets. While LPs continue to scrutinize alignment and transparency, the increasing adoption of CVs signals a lasting evolution in how private equity approaches liquidity and long-term value creation.
Read the full article, here.