Majority of CVs Run by Mid-Market GPs in 2025 Equivalent to 50% or More of Latest Flagship – Lazard

Why It Matters

The trend gives mid‑market GPs greater influence over secondary market pricing and expands liquidity options for limited partners, reshaping the competitive landscape of private‑equity secondaries.

Key Takeaways

• Mid-market GPs to manage 50% of 2025 CV capital
• Larger continuation vehicles attract trophy asset owners
• CV-on-CV structures expected to rise sharply
• Liquidity demands drive shift toward bigger secondary funds
• Flagship CV sizes set new benchmark for mid-market

Pulse Analysis

Continuation vehicles have become a cornerstone of private‑equity liquidity strategies, allowing sponsors to extend ownership of high‑performing assets without a full exit. Lazard’s analysis highlights that the total capital locked in CVs managed by mid‑market general partners will match or exceed half of the latest flagship funds by 2025. This growth is driven by a confluence of factors: limited partner appetite for stable cash flows, a scarcity of attractive primary deals, and the maturation of secondary market infrastructure that supports larger, more complex structures.

Mid‑market sponsors are leveraging these larger CVs to preserve trophy assets that would otherwise be sold to larger buyout houses. By rolling assets into continuation vehicles, they can secure continued upside participation while offering existing investors a clear liquidity path. The larger pool sizes also enable economies of scale, reducing transaction costs and enhancing bargaining power in negotiations with lenders and service providers. Consequently, mid‑market firms are emerging as pivotal liquidity providers, challenging the traditional dominance of mega‑funds in the secondary space.

The report also points to a rising prevalence of CV‑on‑CV transactions, where a continuation vehicle itself becomes the target of a subsequent secondary deal. This layering amplifies capital efficiency, allowing investors to re‑allocate exposure across multiple vintages without triggering a full exit. As the practice gains traction, it could reshape valuation dynamics, introduce new risk‑adjusted return metrics, and spur innovation in fund‑of‑funds strategies. Stakeholders should monitor regulatory developments and fee structures, as they will influence the sustainability of this evolving secondary market model.