What are continuation vehicles (CVs)?

Continuation vehicles – commonly referred to as CVs – are an alternative form of realization or exit for a private equity-owned business, or a collection of businesses.

In a traditional private equity exit, a firm sells a portfolio company to a strategic buyer, another financial sponsor, or takes it public. Continuation vehicles offer a different path. Rather than fully exiting a position, a PE firm can recapitalize the equity of one or more businesses and maintain control for longer – preserving ownership in assets they believe have meaningful value still ahead.

Existing investors, or LPs, are given the option – but not the obligation – to roll their interest into the new vehicle or take liquidity and cash out of their investment entirely. This optionality is central to what makes the structure attractive.

On the other side of the transaction, secondary buyers come in as new capital, recapitalizing those businesses and stepping into the vehicle alongside any LPs who elect to remain.

In many ways, continuation vehicles create a win-win for both the GP and existing LPs — offering flexibility, preserving optionality, and allowing the best assets more time to reach their full potential.