Continuation Funds in 2026: Beyond Liquidity

Continuation funds have evolved from a liquidity workaround into a portfolio management tool in their own right. In 2026, LPs and GPs are watching the data closely as the structure becomes embedded in how private markets manage ownership.

This Preqin Primer explores:

• The rapid rise of continuation funds, from 13 closed globally in 2018 to 123 in 2025, with aggregate capital raised climbing from $9.0bn to $75.0bn

• More than one dollar in eight – 12.4% of all direct private equity fundraising in 2025 – flowing into continuation funds, up from just 1.2% in 2018

• Continuation funds are posting competitive returns – a 28% median IRR in 2023 outpaced US buyouts, all private capital, and even top-quartile private equity

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