Key Takeaways
- • Goldman Sachs and Evercore are exploring evergreen continuation vehicles that could let private equity sponsors hold portfolio companies for 10 to 15 years, according to Bloomberg.
- • Proposed structures would depart from conventional continuation funds, which typically have five-year lifespans with two one-year extensions, by removing pressure to pursue an exit.
- • Continuation funds made up just under half of the $121bn in global secondary transactions completed in the first half of 2026, per Evercore.
- • Carried interest arrangements and investor liquidity mechanisms, including asset distributions, new investor capital and tender offers, are expected to draw regulatory and investor scrutiny.
- • Raymond James and Lazard advisers describe the market as early-stage, with structures likely to be tailored to individual transactions.
Summary
Goldman Sachs and Evercore are exploring a new generation of evergreen continuation vehicles that could allow private equity firms to retain portfolio companies for up to 15 years, according to a report by Bloomberg. The banks, together with Jefferies, Raymond James and Lazard, are reportedly discussing the structures with several major private equity managers and institutional investors as sponsors seek greater flexibility over holding periods.
The proposed vehicles differ materially from conventional continuation funds, which typically have five-year lifespans with two potential annual extensions. The new structures could hold assets for 10 to 15 years without pressure to pursue an exit. They would also provide additional unfunded capital to support portfolio company growth, potentially allowing sponsors to keep high-performing businesses for longer.
According to Evercore, continuation funds accounted for just under half of the $121bn in global secondary transactions completed during the first half of 2026. The structures could face greater scrutiny over carried interest arrangements and investor liquidity. Discussions are continuing over potential exit mechanisms, including asset distributions, new investor capital and tender offers. Bankers are also reportedly considering arrangements that would allow existing investors to realise holdings in exchange for commitments to new funds.
Sunaina Sinha Haldea, global head of private capital advisory at Raymond James, told Bloomberg that the market remained at an early stage. Holcombe Green, global head of private capital advisory at Lazard, expects structures to be tailored to individual transactions.
The proposed vehicles differ materially from conventional continuation funds, which typically have five-year lifespans with two potential annual extensions. The new structures could hold assets for 10 to 15 years without pressure to pursue an exit. They would also provide additional unfunded capital to support portfolio company growth, potentially allowing sponsors to keep high-performing businesses for longer.
According to Evercore, continuation funds accounted for just under half of the $121bn in global secondary transactions completed during the first half of 2026. The structures could face greater scrutiny over carried interest arrangements and investor liquidity. Discussions are continuing over potential exit mechanisms, including asset distributions, new investor capital and tender offers. Bankers are also reportedly considering arrangements that would allow existing investors to realise holdings in exchange for commitments to new funds.
Sunaina Sinha Haldea, global head of private capital advisory at Raymond James, told Bloomberg that the market remained at an early stage. Holcombe Green, global head of private capital advisory at Lazard, expects structures to be tailored to individual transactions.
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