From continuation vehicles to credit secondaries: Sabina Sammartino in PEI

Key themes from the report

• Once dominated by large sponsors, continuation vehicles saw broader adoption across the mid and lower mid-market in 2025, as GPs looked for flexible ways to meet sustained LP demand for liquidity amid a subdued exit environment.
• Single-asset continuation vehicles gained momentum, supported by a growing pool of capital and the increasing use of structured solutions like preferred equity and NAV-based financing, which helped bridge pricing gaps and improve execution certainty.
• While private equity continued to lead in GP-led activity, there was rising interest in private credit and infrastructure, particularly in areas such as digital infrastructure and data centres where long-term investor appetite remains strong.
• Investor demand stayed resilient but became more selective, with greater participation from specialist secondaries funds and retail capital. This shift points to a more mature, segmented market, where investors are prioritising familiarity with assets and sponsor relationships.