Travers Smith's Alternative Insights: ILPA tells GPs to justify continuation vehicle processes, not just run them - ILPA's new guidance for CVs

The continuation vehicle (or CV) has grown from a niche liquidity mechanism into a standard portfolio management tool in private equity, with increasing adoption in other asset classes. Jefferies 2025 Global Secondary Market Review records CVs at roughly 14% of sponsor-backed exits globally last year, up from 5% in 2021.

With growth has come increasing scrutiny. As we heard from ILPA (the Institutional Limited Partners Association – the leading industry body for LPs) at a briefing hosted at Travers Smith's offices, LPs have expressed growing concerns about CV misuse.