Article
Continuation Vehicles Are ‘Fourth Exit,’ Not Just a Product of Weak Exit Markets, SuperReturn Panelists Say
A panel of secondary market participants at SuperReturn West Los Angeles on Sept. 14 pushed back on the idea that continuation vehicles are strictly a symptom of a slowdown in dealmaking volume, saying instead that the structure has earned a permanent place alongside traditional exits and IPOs and will keep growing even when M&A recovers.
“If you asked people 10 years ago, they would have said GP-led secondaries were a tool for managers in tight spots with difficult investments. That’s absolutely not the case anymore,” said Leor Landa, head of investment funds and sponsor solutions at Davis Polk. “We’re seeing many, many of the top managers pushing their highest performing, largest assets into the CV market.”
The growth in GP-led equity secondaries has tracked with a slowdown in dealmaking since exits peaked in 2021 and 2022 and financial sponsors grapple with extended hold periods. GP-led secondary activity rose to $65 billion in the first half of 2026 from $27 billion in the first half of 2022, according to a recent report from Evercore.
“We call it the fourth exit,” Landa continued. “There are secular reasons why a CV makes sense as an exit, just like there are some assets [where] an IPO makes sense or some assets [where] a strategic sale makes sense.
Panelist Jeff Straus, a principal on Hamilton Lane’s secondary investments team, agreed with Landa.
“I think the growth will accelerate going forward, even if the M&A market picks up,” Straus said. “I think there’s no reason that both can’t exist. We’re in the very early chapters of this.”
Straus pointed to the fact that 2021 was a record year for traditional M&A as well as GP-led secondary activity. “The thought it’s natural to assume that the lack of M&A volume is driving the continuation vehicle CV market. is a natural thought. I think in reality it is likely probably true, but only on the margins,” he said.
“GP-leds have proven their value proposition to GPs as an effective way to manage your portfolio, continue owning your A-plus trophy assets and to capture that next phase of value creation while also giving your LPs a liquidity option,” Straus continued.
This publication has been prepared by Octus Intelligence, Inc. or one of its affiliates (collectively, "Octus") and is being provided to the recipient in connection with a subscription to one or more Octus products. Recipient’s use of the Octus platform is subject to Octus Terms of Use or the user agreement pursuant to which the recipient has access to the platform (the “Applicable Terms”). The recipient of this publication may not redistribute or republish any portion of the information contained herein other than with Octus express written consent or in accordance with the Applicable Terms. The information in this publication is for general informational purposes only and should not be construed as legal, investment, accounting or other professional advice on any subject matter or as a substitute for such advice. The recipient of this publication must comply with all applicable laws, including laws regarding the purchase and sale of securities. Octus obtains information from a wide variety of sources, which it believes to be reliable, but Octus does not make any representation, warranty, or certification as to the materiality or public availability of the information in this publication or that such information is accurate, complete, comprehensive or fit for a particular purpose. Recipients must make their own decisions about investment strategies or securities mentioned in this publication. Octus and its officers, directors, partners and employees expressly disclaim all liability relating to or arising from actions taken or not taken based on any or all of the information contained in this publication. © 2026 Octus. All rights reserved. Octus(TM) and the Octus logo are trademarks of Octus Intelligence, Inc.