40% of GPs Expect to Mull CV in the Next Two Years – Bain Study

Why It Matters

The shift toward CVs reshapes fund‑level liquidity dynamics, offering LPs earlier cash without forcing a full exit and expanding opportunities for secondary market participants.

Key Takeaways

• 40% GPs will explore continuation vehicles soon
• Over 50% cite LP capital return as main driver
• CVs extend fund life while providing liquidity
• Growing demand may boost secondary market volumes
• LPs gain earlier cash without full fund exit

Pulse Analysis

Bain’s recent study underscores a notable pivot in private‑equity fund strategy: nearly two‑fifths of general partners are poised to consider continuation vehicles (CVs) within the next 24 months. This appetite is driven largely by the desire to return capital to limited partners, a priority cited by over half of the surveyed GPs. By rolling assets into a new vehicle, managers can extend the investment horizon, avoid premature exits, and align cash‑flow timing with LP liquidity needs, all while preserving upside potential.

For limited partners, the rise of CVs represents a pragmatic solution to the chronic illiquidity of private‑equity commitments. Instead of waiting for a traditional fund wind‑down or secondary sale, LPs can receive distributions earlier, improving portfolio cash management and reducing concentration risk. Asset managers, meanwhile, gain a flexible tool to manage fund overruns and capitalize on high‑performing holdings without triggering a full liquidation, thereby enhancing overall return profiles.

The broader market implication is a likely acceleration of secondary‑market activity. As more GPs adopt CV structures, transaction volumes and pricing transparency in the secondary space are expected to rise. Investors will need to assess the trade‑offs between extended exposure and immediate liquidity, while regulators may scrutinize the governance of these vehicles. Ultimately, the trend signals a maturing private‑equity ecosystem that balances long‑term value creation with the growing demand for timely capital returns.