Continuation Funds Stormed the Alts World, But Are They Performing?

Private fund managers are on track for yet another record tally of continuation fund formation –the fifth year running in a trend that took off in 2020 and has kept up through market highs and lows. But even as the 2025 count appears set to top last year's 65 deals and $27.3 billion in volume, a key statistic for the market remains elusive: how exactly the current crop of continuation vehicles is performing.

A&M's Transaction Advisory Group Managing Director Anthony Caporrino was recently featured in FundFire's article, highlighting the goal of continuation vehicle performance to mimic buyout strategies and other private funds, stating, "most astute limited partners would expect those types of returns, but there isn't a ton of data to measure because of the short history here." 

Caporrino emphasizes the potential for these vehicles to perform in line with the broader private equity market, adding that as the economy strengthens and interest rates decline, performance is likely to improve. Caporrino also points out that early data should be cautiously interpreted, as it is largely based on manager-generated valuations with few actual exits from early continuation funds.

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