Ares Deploys $850M Continuation Vehicle for Convergint

Why It Matters

The transaction demonstrates how large PE firms are using continuation funds to lock in returns and manage capital efficiently, signaling a maturing secondary market that benefits both sponsors and limited partners.

Key Takeaways

• Ares raised $850M for Convergint continuation vehicle.
• Leonard Green leads investor group; Goldman Sachs also participates.
• Vehicle provides liquidity while retaining Ares’ exposure.
• 2023 secondaries volume hit record $240B globally.
• Continuation funds becoming mainstream capital‑management tool.

Pulse Analysis

The secondary market for private equity has evolved from a niche liquidity outlet to a core component of capital management. In 2023, firms executed $240 billion of secondary transactions, a record that reflects heightened demand for flexible exit options and portfolio optimization. Continuation vehicles—funds that acquire existing stakes from limited partners—have emerged as a preferred mechanism, allowing sponsors to retain high‑quality assets while returning capital to investors who seek liquidity.

Ares Management’s $850 million continuation fund for Convergint illustrates this trend in practice. By transferring the 2018‑acquired business into a new structure, Ares provides liquidity to its original investors and secures a shared control position alongside Leonard Green and Harvest Partners. The involvement of Goldman Sachs’ alternatives business adds credibility and signals strong institutional appetite for such vehicles. The fund’s size places it among the larger continuation deals, highlighting Ares’ confidence in Convergint’s growth trajectory and the broader market’s willingness to fund extended ownership.

For the private‑equity ecosystem, the rise of continuation funds reshapes the traditional investment horizon. Limited partners gain a predictable exit path without sacrificing upside, while general partners can continue to generate fees and value creation on proven assets. As secondary volumes remain robust, sponsors are likely to expand their continuation platforms, potentially leading to more standardized terms and greater transparency. This shift could also influence fundraising dynamics, with investors demanding dedicated strategies that balance liquidity and long‑term exposure.

Deal Summary

Ares' private equity fund invested $850 million into a continuation vehicle for Convergint, providing liquidity to existing investors while retaining shared control alongside Leonard Green & Partners and Harvest Partners. Leonard Green led the fund with participation from Goldman Sachs' alternatives business.