In this first edition, we look at how sponsors and investment managers are increasingly using continuation funds and LP or GP-led secondaries as strategic tools to actively manage portfolios, holding periods and capital needs.
Trend
Recent market figures show the rapid expansion of the secondary market, with secondary funds now approaching 15% of global PE fundraising (compared to an average of 8% over the past 5 years). For investment managers and sponsors, these are increasingly used as portfolio and capital management tools serving in particular the following strategies:
- Timing/holding periods – Extending holding periods to capture further value upside or allow for recovery, in an environment of delayed exit markets (particularly muted IPOs and selective M&A processes), and a desire to avoid forced sales in sub-optimal market conditions.
- Liquidity & fundraising – Providing structured liquidity options for LPs, while enabling the GP to raise new capital to pursue the asset retention strategy and continue to hold the underlying assets.
- LP optionality – Offering the LPs the possibility of full exit, partial exit with roll-over, and the option to invest additional capital for those wishing to increase their exposures.
[1] 2026: Yet another record year for secondaries volume?
[2] Financial Times: "Private equity backers offload record amount of old fund sakes" (12.01.2026)
Luxembourg context
Luxembourg offers investment managers and sponsors an investor-trusted and well-tested platform for secondary and continuation vehicles, combining flexible structuring tools with an attractive and stable legal and regulatory framework. This enables efficient asset roll-overs and tailored liquidity options, aligned with the needs of sponsors as well as incoming investors and existing LPs.
How can we assist?
We support institutional investors, private equity sponsors, asset managers and investment funds on continuation and secondaries vehicles covering structuring, asset roll-overs, LP’s liquidity solutions as well as corporate governance framework.