The GP-Led Continuation Vehicle Market: Which Platforms and Strategies are Positioned to Succeed

Existing sponsor relationships, broad syndication capacity, and the ability to invest as an established LP matter more for GP-led continuation vehicles than simply being the lead investor or offering direct-style underwriting expertise.

• The market reached $106 billion of closed volume in 2025, up approximately 51% year over year; 83% of the top 100 global buyout sponsors have used CVs, and repeat issuers generated 58% of 2025 volume.
• Average transaction size rose more than 15% to approximately $1 billion in 2025, while deals above $1 billion increased 57%; transactions between $250 million and $500 million averaged 7 new investors, compared with 12 for $500 million to $1 billion deals and 17 above $1 billion.
• Although lead investors set price and negotiate terms, sponsors control allocations; approximately 60% of secondary investors committed primary capital to a sponsor's flagship fund after a 2024 continuation transaction.
• Standardization has reduced the lead investor's unique advantages: 77% of CVs had management fees below 1%, 84% had preferred-return hurdles of at least 8%, and 95% had tiered carry structures in 2025.
• GCM Grosvenor reports that 61% of its CV investments from January 2020 through December 2025 included sponsor cross-fund investments, which it views as evidence of alignment; direct-style investors may face a narrower opportunity set because sponsors prefer existing LPs and future primary commitments.

Takeaway: Investors should prioritize sponsor access, prior relationships, scalable syndication, and accumulated asset knowledge rather than overpaying for lead status or relying solely on direct-buyout expertise, while recognizing that some competitive processes can exclude losing lead bidders from the syndicate.