Private equity faces challenges with higher financing costs and a slowdown in exit activity. Continuation vehicles (“CVs”) now make up 84% of the GP-led secondary market, offering a way to address competing pressures and provide liquidity. CVs allow sponsors to hold onto strong assets and navigate the bifurcated market landscape. Limited partners can choose to roll exposure forward or take liquidity based on updated underwriting. Ultimately, CVs are becoming a more common and viable exit strategy in private equity.

Read more at Yahoo Finance: Private equity’s playbook to shake off the zombies: meet the continuation vehicle