"The size, scale and ambition of what’s taken on as an alternative to conventional liquidity is going to continue to grow, particularly in the single-asset space."
Financial Sponsors Insights
Secondaries Take Center Stage:
Exploring the rising role of continuation vehicles
General Partner-led (GP) secondary volume reached $115 billion in 2025, representing a 53% increase year-over-year and accounting for 48% of total secondary market activity.1
Traditionally used to provide liquidity to Limited Partners (LP) during periods of constrained M&A and IPO activity, secondaries have emerged as key structural elements of Private Equity markets. General Partner-led (GP) secondary volume reached $115 billion in 2025, representing a 53% increase year-over-year and accounting for 48% of total secondary market activity.1 Even as M&A markets rebounded in Q4 2025, GP-led secondary transactions continued to show strong growth, offering sponsors and their limited partners an expanded set of tools to access liquidity and manage portfolio exposure.
To explore the dynamics behind the growth and the potential advantages going forward, we sought the insights of two experts with extensive experience in the secondaries market, David Fox, Partner at Leonard Green & Partners, and Josef Menasche, Managing Director at Goldman Sachs.
Secondaries as a reflection of a growing market
Nearly 75% of the largest GPs have executed at least one continuation transaction.2
Having invested in secondaries for two decades, David Fox believes that the increased use of secondaries is a reflection of the increased volume in the market, saying, “The long-term structural growth of secondaries is a simple derivative of the flow of assets into the private market.” Josef Menasche adds that the increased volume has allowed for a proof of concept. As he expresses it, “With the increasing number of secondaries deals over the last few years, we’ve probably seen capital form around the strategy more quickly than any other part of the private markets.”
Single-asset CVs gaining favor
In 2025, continuation vehicles accounted for more than 89% of GP-Led secondary market activity, and 43% of total secondary market volume.3
GP-led single-asset continuation vehicles (SACVs) are the most common secondary exit strategy, and both Menasche and Fox report continued interest, particularly for exceptionally high-performing companies. David Fox suggests that “single-asset vehicles look and feel like the natural extension of what PE firms already do, which is buy and sell companies one at a time.” The growing trend towards single-asset vehicles, he believes, is also being fueled by changes in how corporate leaders are viewing public markets. “I think you're going to see many companies want to stay private for longer, so you'll increasingly see more creative structures allowing for longer hold periods with more liquidity." Josef Menasche added, “Some companies may benefit from staying in the private markets, where they can undertake strategic plans and focus on driving long-term value without the rigorous requirements associated with being a public company."
Expanding exit options
Both Menasche and Fox believe the expansion of exit strategies in both private and public markets offers sponsors greater opportunities to determine the best outcome for their investors. In comparing CVs to IPOs, Fox says, “It’s not a zero-sum game, but more an expansion of opportunities for sponsors and LPs to generate liquidity that best supports the long-term objectives of portfolio companies.” Menasche reports that this more expansive view of potential vehicles allows his clients to better align exit strategies with their strategic goals. “When a sponsor looks at his portfolio, they should think about who's the best owner of this business for the next step. Do you want to do a private exit or a public exit? And if it's a private exit, is it really an exit, or do you just need to generate liquidity for your investors? Then we know if we should be speaking about selling to a strategic acquirer, or a sponsor.”
Risk management as a transaction accelerant
While stressing the importance of reviewing every transaction with fresh eyes, Fox and Menasche discussed how a sponsor’s familiarity with a portfolio company can help to mitigate risk and accelerate timelines. Menasche suggested that “if a sponsor wants to own a business for longer and has a great relationship with management, they often have a clearer view of what they want to do for the next four years.”
Fox also highlighted the advantages of CVs over other exit strategies for closing deals in timely fashion. “You don't need to undertake the same diligence required when buying a brand new company that you may not be familiar with, so you may actually get better returns more quickly from an asset that you continue owning.” Menasche added his view that using insurance should be even more prevalent in secondaries than it should be in M&A, as deals get negotiated more quickly and it's better for the LPs because it can minimize pullbacks and purchase price adjustments.
“The world is evolving rapidly. To adjust to these changes, companies can shift their areas of focus and operations, and with that, their regulatory environment can also change. So, it’s very important to have a partner who can offer timely and practical advice, especially in sectors where they have a lot deeper experience than we do.”
Moving Your Organization Forward
HUB's Representations & Warranties specialists work alongside sponsors, counsel and secondary buyers to structure R&W policies purpose-built for GP-led transactions. Because sponsors entering a continuation vehicle already possess deep familiarity with the underlying asset, the underwriting process can move more efficiently, and coverage can be broader than in a traditional acquisition. HUB advisors help clients capitalize on these advantages to minimize escrow requirements, reduce purchase price adjustment risk and close on accelerated timelines.
The growth of continuation vehicles is reshaping how sponsors create value, manage liquidity and build lasting partnerships with portfolio companies. Capitalizing on this evolution requires more than transactional insurance — it requires an advisor who understands the full arc of private equity ownership, from initial investment through exit and beyond.
HUB specialists bring deep expertise in R&W insurance, management liability, cyber risk and portfolio-level risk advisory, delivering practical, timely guidance at every stage of the deal lifecycle. HUB's Private Equity team advises GPs and secondary buyers across industries with deep domain expertise — from healthcare, food and beverage to vegetation management, elevator maintenance and beyond.
That sector depth goes beyond traditional insurance counsel, offering nuanced insights that meaningfully inform underwriting and deal evaluation. The real one-two punch is partnering with a broker who brings both specialized expertise in placing secondaries R&W policies and deep industry sector knowledge — a combination that creates a meaningful difference in the coverage achieved and the insight needed to support your thesis work through the next phase of growth.
When the pace and complexity of secondaries demand a partner who truly gets what you're doing at the transaction level and the industry level. HUB is ready to move with you.
Contact HUB's Private Equity team today at hubinternational.com/privateequity
Download the report here.
1 Jefferies, "2025 Global Secondary Market Review: January 2026," Jefferies Private Capital Advisory, January 2026.
2 Jefferies, "Global Secondary Market Review: July 2025," Jefferies Private Capital Advisory, July 2025.
3 Jefferies, "Global Secondary Market Review: January 2026," Jefferies Private Capital Advisory, January 2026
HUB Private Equity Practice
We’re dedicated to serving the unique needs of the Financial Sponsors Community by:
- Deal Certainty
Our goal is to aid in providing you with deal certainty. From obtaining and placement of representations & warranties insurance to completing diligence at deal pace while telling you what you need to know, not necessarily what you want to hear.
- Impacting EBITDA through Value Creation
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- Supporting the Exit Landscape
Whether through IPO, continuation funds or private liquidity events, we ensure portfolio companies are exit-ready, with risk and insurance programs built to withstand investor scrutiny and regulatory review, preserving deal value and accelerating close.
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