2026 Midyear Report
Secondary Data Trends for Continuation Funds
A midyear analysis of continuation vehicle pricing, transaction volume, LP elections, sponsor behavior, regulatory developments, and strategy-specific secondary market trends.
Executive Summary
Continuation funds remained one of the fastest-growing segments of the secondary private capital market in the first half of 2026, supported by constrained exits, larger transaction sizes, and wider institutional acceptance.
- Single-asset buyout continuation vehicles achieved the strongest pricing, often near or above NAV.
- Continuation vehicles represented approximately $48 billion of first-half GP-led secondary volume.
- The average transaction size reached approximately $810 million.
- Only 9% of LPs rolled over, while an estimated 91% elected cash.
Midyear Snapshot
Pricing remained strong, but dispersion became increasingly strategy specific.
In this report
Continuation funds moved further into the institutional mainstream.
Through the first six months of 2026, continuation funds remained one of the fastest-growing segments of the secondary private capital market. Activity continued to benefit from constrained traditional exits, larger transaction sizes, and broader institutional acceptance.
Single-asset buyout continuation vehicles achieved the highest prices, typically around 99% to 100% of NAV for top-tier assets, while multi-asset buyout vehicles generally achieved 90% or more of NAV.
The report estimates that continuation vehicle volume comprised approximately $48 billion of the $63 billion in GP-led secondary transaction volume during the first half of 2026. The average vehicle size was approximately $810 million, while the average price was about 93.50% of NAV.
Secondary pricing is no longer defined by one market-clearing discount. Pricing increasingly depends on strategy, asset quality, valuation credibility, duration, and buyer depth.
Continuation fund pricing is increasingly an underwriting outcome, not a single market price.
Repeat issuance, larger deals, and more formal processes defined the first half.
Repeat sponsor issuance expanded
NYPPEX estimates that 60% of continuation vehicle volume in 1H2026 came from repeat sponsor issuers, indicating that established GPs are using the structure systematically rather than only in isolated situations.
Transaction sizes continued to scale
The average transaction size was approximately $810 million, with a growing number of continuation vehicles exceeding $1 billion.
LP process standards became more formalized
The ILPA 2026 Continuation Fund Disclosure Template and updated guidance reflected the market’s transition from a niche liquidity tool to a more institutionalized segment.
NYPPEX estimates that 85% of the top 100 global buyout sponsors have accessed the continuation vehicle market since inception, while 60% of first-half 2026 volume came from repeat issuers.
Liquidity needs outweighed rollover participation.
NYPPEX estimates that the average LP rollover rate into continuation vehicle transactions was only 9% in the first half of 2026, compared with an estimated 15% in 2025.
LP decisions to roll or take cash were shaped by liquidity requirements, conviction in the underlying asset, willingness to extend duration, mandate flexibility, and the internal resources available to underwrite a concentrated position.
The modest rollover rate does not necessarily indicate weak asset quality. Some LPs may have confidence in the asset but still prefer cash because they lack the mandate, team depth, or structuring capabilities needed to evaluate a GP-led transaction directly.
Top-tier buyout assets approached par, while other strategies required wider discounts.
Pricing dispersion was increasingly determined by strategy, asset type, valuation confidence, cash-flow visibility, and expected duration.
Strongest pricing
Approximately 42% of deals were priced at 100% of NAV or above, and more than 88% were priced at 90% of NAV or above.
Broadly 90%+
Approximately 76% of deals were priced at 90% of NAV or above, with a discount for complexity and mixed-asset exposure.
Greater dispersion
Venture, real estate, private credit, and real assets were more sensitive to valuation, duration, financing assumptions, and cash-flow resilience.
| Strategy / Structure | Mid-2026 Price as % of NAV | Interpretation |
|---|---|---|
| Buyout, single-asset continuation funds | Typically about 99% to 100% of NAV for top-tier assets; 42% of deals at 100%+ NAV and more than 88% at 90%+ NAV. | Strongest pricing in the market. |
| Buyout, multi-asset continuation funds | Usually below single-asset deals, but still largely 90%+ of NAV; 40% at 100%+ NAV and 76% at 90%+ NAV. | Discount for complexity and mixed-asset exposure. |
| Venture continuation funds | Generally below buyout and more discount sensitive. | Wider discounts reflect mark volatility and duration risk. |
| Real estate continuation funds | Multifamily at 99% of NAV; diversified commercial portfolios at 90.50% of NAV, depending heavily on asset type and valuation confidence. | Marks and financing assumptions matter more. |
| Distressed debt / private credit continuation funds | Senior secured industrial credit portfolios can trade in the 90s and sometimes at 100% of NAV. | Better cash-flow visibility can support tighter pricing. |
| Infrastructure / adjacent real assets | Often expected to sit between buyout and real estate. | Pricing depends on cash-flow resilience and concentration. |
Scrutiny increased as continuation funds became more mainstream.
Regulatory and industry attention intensified around conflicts of interest, valuation support, disclosure quality, election mechanics, and the availability of a genuine status quo option.
The ILPA 2026 Continuation Fund Disclosure Template represented the clearest institutional signal, seeking to standardize the high-level information provided to LPs and address concerns about compressed decision timelines and incomplete disclosure.
NYPPEX expects greater emphasis on conflict procedures, valuation validation, proper approvals, and fiduciary treatment of existing investors. The market is moving toward more formal price discovery, stronger documentation, clearer disclosure, and tighter conflict-management records.
The report also identifies broader scrutiny of portfolio-company compliance risk, including transactions involving certain Chinese technology sectors under the U.S. Treasury Department’s Outbound Investment Security Program.
LPs became more familiar with continuation funds—and more demanding.
Beyond liquidity
LPs increasingly evaluated continuation funds not only as liquidity solutions, but also as potential sources of competitive returns.
Harder diligence
Investors pressed harder on valuation methodology, governance, conflicts, economics, and whether GP incentives remained fairly aligned.
Specialization mattered
Many LPs lacked the structuring expertise or internal team depth to source, lead, and negotiate GP-led transactions directly.
Continuation fund syndications represented a large share of LP direct secondary investments in the first half of 2026, supporting broader institutional familiarity with the structure.
Buyout remained the benchmark, while other strategies depended more heavily on underwriting quality.
Benchmark strategy
Buyout continuation funds achieved the highest percentage of NAV because buyers underwrote seasoned assets with clearer exits and stronger sponsor alignment.
More NAV sensitive
Venture pricing improved as marks became more realistic, while real estate remained highly sensitive to asset type, financing assumptions, and valuation confidence.
More institutionalized
Senior secured portfolios could trade in the 90s and, in some cases, at par when cash-flow visibility and collateral quality were strong.
Continuation fund pricing increasingly reflected asset-specific underwriting.
Across strategies, the central first-half 2026 theme was that continuation fund pricing is no longer governed by one market price. Outcomes increasingly depend on asset quality, valuation credibility, duration, sponsor alignment, and the depth of the buyer universe.
— The Secondary Data & Analytics Team at NYPPEX