Alignment: the non-negotiable
GP alignment is not a box to tick — it is the central signal in any continuation vehicle. The benchmark is unambiguous: the GP should be rolling their full interest, ideally increasing their position, and forgoing any liquidity they could have taken.
For GPs executing a continuation vehicle for the first time, alignment has an internal dimension too. In a large, decentralised firm, recommitting carry and potentially investing further out of pocket requires the deal team to persuade internal partners with the same rigour applied externally. That internal conviction process is itself a meaningful signal — one that secondary investors like Coller view as corroborating evidence that the asset is genuinely believed in across the partnership, not just by the deal team closest to it.
Alignment looks different in private credit, but it’s just as strong. Because credit managers typically hold the same loans across multiple funds they run, they have ongoing skin in the game regardless — the assets in a continuation fund are never sitting in isolation, they’re part of a portfolio the GP is actively managing every day. Compare this to equity continuation funds, where the GP’s continued involvement is more deliberate and deal-specific. In both cases, alignment is there — it just comes from a different place.
00:00:05 – 00:00:12
2025 was another record breaking year for GP leds. Specifically continuation funds.
00:00:12 – 00:00:21
There was $108 billion of transaction value in the market. That was up significantly from 2024, which was $77 billion.
00:00:21 – 00:00:27
And if you go all the way back to 2015, it was only an $8 billion market, so we’ve seen tremendous growth.
00:00:27 – 00:00:36
GP-leds are the fastest growing part of the secondaries market. The format that is most prevalent today are single asset continuation vehicles and those are getting bigger.
00:00:36 – 00:00:41
In fact, last year 29% of those transactions were over $1 billion in size.
00:00:46 – 00:00:48
First and foremost, we have great alignment.
00:00:48 – 00:00:57
Whenever we work on a continuation vehicle with the GP, their own dollars are going in behind that, so we think it would be unlikely that they would be investing behind an asset they didn’t believe in.
00:00:57 – 00:01:09
We do extensive due diligence – our team is very experienced. We’ve done more continuation vehicles than anybody in the secondary market, so our ability to underwrite these and understand the underlying dynamics of the business are very strong.
00:01:09 – 00:01:16
And then lastly, we have so much deal flow that if we were unsure of an asset or we didn’t think it was a quality asset, we’d just move on to something that was far better.
00:01:16 – 00:01:22
There’s far more transactions in market that can possibly get capitalised by the capital that’s been put together for this market.
