2024延续基金研究

Introduction2The continuation fund market has experienced significantgrowth and evolution in recent years, with continuationfunds becoming a widely adopted solution that can be usedby GPs to strategically unlock liquidity for LPs, optimizeportfolios, retain attractive assets, and support futuregrowth, particularly as traditional exits have been pushedout amid recent market volatility and macroeconomicuncertainty.About This StudyIn this study, we have undertaken a detailed review of a sample of actual orproposed continuation fund transactions launched or closed in 2023 and 2024across the U.S., Europe, and Asia with the aim of providing additionalperspective on key market trends and deal terms.The study is based on insights gained by Houlihan Lokey’s dedicated FundOpinions team, which is the market leader in providing fairness opinions andvaluation advice to assist sponsors in navigating conflict situations, such ascontinuation fund and other fund-affiliate transactions globally. The FundOpinions team has supported hundreds of leading sponsors across a wide rangeof continuation and cross-fund transactions. Overview of Transaction Mix3Our sample reflects an approximate 40% increase in continuation vehicle (CV)deal count from 2023 to 2024, which is consistent with the broader uptick in GP-led secondaries volume observed in 2024.The sample skewed heavily toward buyout assets (92% of transactions reviewed),which has continued to account for the majority of GP-led secondary activity.However, venture capital and growth equity (6% of transactions reviewed) showedgains, particularly in 2024.•Credit has become an increased area of focus both for GPs and secondaryinvestors alike but continues to represent a small percentage of CV activity. Weexpect this will change as private credit funds continue to mature, and morestrategy-specific buyside vehicles enter the GP-led secondary market.We observed a similar mix of single-asset versus multi-asset transactions in 2023and 2024 based on deal count, with deployment skewing slightly toward single-asset CVs.•The sampled single-asset CVs involved funds with a median fund age ofapproximately seven years and portfolio companies with a median hold periodof approximately five years, with both data points remaining relativelyconsistent across both 2023 and 2024 transactions.•Approximately 55% of the multi-asset CVs reviewed involved assets that wereheld in two or more funds of the same sponsor, as GPs are increasingly usingCVs as a portfolio management tool across funds. This can increase dealcomplexity, including requiring an allocation of value between each of thefunds involved.The industry mix of reviewed CVs was varied, with technology (34% of thesample), industrials (17% of the sample), and energy (17% of the sample) leadingthe way.•The majority of the sampled multi-asset CVs involved a portfolio of assetsacross different industries, offering buyers an opportunity for more diversifiedexposure. Single-Asset vs. Multi-Asset CVs(Percent of Transactions Reviewed)Note: Industry mix data excludes certain multi-asset CVs that include a portfolio of assets across different industries.Sources: Public News Articles, Wall Street Research.60%Single-Asset40%Multi-Asset2023CVs by Asset Class(Percent of Transactions Reviewed)92%Buyout2%Credit6%VentureCapital CVs by Industry(Percent of Transactions Reviewed)17.1%Industrials5.7%Real Estate17.1%Energy andInfrastructure 4Market participants noted 48% year-over-year growth in GP-ledtransaction volume in 2024, which,based on our sample of reviewed CVs,was supported by both an increase inthe number of launched deals and amaterial uptick in the mediantransaction size.The increased transaction size reflectedsignificant growth in single-asset CVtransaction sizes (which continued torepresent a slight majority of the sampledtransactions in 2024) and an increase inthe number of large multi-asset CVs.These larger transactions have becomemore viable as a result of increases ininvestor commitment amounts, driven byan influx of buyside capital, growth in LPco-investment demand, and the increase indeals with co-lead investors.Growth in CV TransactionSizes in 2024 (Percent of Transactions Reviewed)•Transaction sizes skewed higher in 2024 with a material increase in the number of +$1.0 billion CVs (25% of sampledtransactions in 2024 versus 5% in 2023).•While there was an increase in large multi-asset CVs in 2024, single-asset CVs also contributed to this trend, with themedian single-asset CV transaction value increasing nearly 50% in 2024.•Despite the increase in CV transaction size in 2024, a meaningful percentage of the sampled CVs are still below $250million in transaction size. This reflects the continued evolution and adoption of CVs, which have historically skewedtoward large-cap GPs (per various market reports, the majority of large-cap GPs have undertaken a GP-led secondarytransaction) but are increasingly being utilized by mid-cap GPs.Note: Transact