Ropes Gray Attorneys Discuss Q4 2025 Continuation Vehicle Trends in SecondaryLink

Alternative asset opportunities partners Isabel Dische and Christian Vareika and asset management counsel Marc Migliazzo and Kevin White shared insights in a SecondaryLink article examining the structuring trends and deal dynamics that shaped continuation vehicle activity in Q4 2025.

"Volume increased in Q4 from an already active Q3, capping another busy year for continuation vehicle deal flow," Christian noted. Looking ahead, he highlighted that "creative deal structuring — including the use of deferrals and earn-outs — continues to gain traction as a tool for bridging valuation gaps and aligning incentives across stakeholders," and that overall deal volume and diversity of market participants will continue to expand.

On pricing, Marc observed that it "continues to be highly deal-specific, driven by the quality of the underlying asset and competitive dynamics among buyers," with "high-quality assets continu[ing] to command premium pricing, particularly in single-asset processes where buyer conviction and competitive tension tend to be strongest."

Isabel pointed to broadening geographic and asset class activity: "Geographically, deal volume in Europe increased at a higher rate than in the U.S., and we observed a meaningful uptick in Asia as well. Beyond traditional private equity, continuation vehicle activity also expanded into adjacent asset classes, with continued growth in credit, infrastructure, and venture."

Kevin highlighted the evolving LP perspective, noting that "LPs continue to show greater sophistication in their approach to continuation transactions, becoming better equipped to evaluate and act on roll or sell decisions in a timely manner," reflecting broader institutional familiarity with CVs and improved internal processes.

The article features additional perspectives from financial advisors and legal counsel on the continued evolution of the GP-led secondaries market.