I2A1788

Report - February 12, 2024

Continuation Vehicle Terms Analysis 

Investor interest in the secondary market continues to steadily grow, despite some softness in 2023 due to the combined influence of macroeconomic uncertainty, dry powder constraints, and risk-averse investment committees.  

As 2024 gets underway, there is strong potential for a reinvigorated expansion of secondary investing, especially for top-quality, resilient businesses with healthy cashflow, strong margins, and solid potential for EBITDA growth. As more investors become familiar with CVs and their many benefits, we expect even higher participation among those seeking proven performance and superior growth.   

In this new Continuation Vehicle Terms Analysis, we share the following key insights on this dynamic market:  

  • Average CV size, split between single-asset and double-asset, and price-to-NAV  

  • Capital raise composition, including number of buyers, legacy fund LP rollover, and average CV fund composition  

  • Funded versus unfunded trends, average GP commitments, CV management fees, and term lengths  

  • Preferred return hurdles by carry tiers, trends in rights and warranties insurance, fairness opinions, and debt refinancing  

Access secondary market insights.

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Contacts

Harris-Williams Bio-Crop jabecassis 1

Jonathan Abecassis

Managing Director

HW-Sixpoint Bio-Crop AndrewGulotta

Andrew​ Gulotta

Head of Private Capital Solutions

HW-Sixpoint Bio-Crop RichardSiegel

Richard​ Siegel

Managing Director