A record 73 continuation vehicles were launched last year amid a turbulent exit environment, with activity continuing in H1 2024

  • Los Angeles-based private equity firm SCI Capital Partners has received a $1.6bn investment from Apollo Global Management to launch a continuation vehicle.

  • The vehicle will support the growth of two SCI portfolio companies: Morton Salt, a US-based salt-producing company for food, water softening, and ice control; and Reddy Ice, the largest packaged ice manufacturer in the US.

  • SCI bought Morton Salt as part of a $3.2bn deal with German corporate K+L in April 2021, which sold the unit as part of a package of measures to reduce debt. At the same time, SCI agreed to sell evaporated salt business Kissner Group Holdings after the Department of Justice’s Antitrust Division filed a lawsuit to block the Morton Salt deal.

  • SCI acquired Reddy Ice in a secondary buyout from Centerbridge Partners in July 2019.

October 10, 2024 (Preqin News) – A record 73 continuation vehicles were recorded by Preqin in 2023, a 48% increase on 2022, as GPs sought to avoid closing out investments and hold assets for longer. Earlier this year, Vestar Capital Partners launched a $1.2bn single-asset continuation vehicle for consumer behavior advisor Circana, while OceanSound Partners closed a $1.2bn vehicle for SMX, a technology firm.

Investment bank Evercore said in its H1 2024 Secondary Market Review that the volume of GP-led secondary transactions, the majority of which are continuation vehicles, increased 94% year-on-year in the first half of 2024, accounting for 43% of all secondaries transactions. Evercore said secondaries deal value in H1 2024 increased 73% to $72bn.

While there are concerns about the use of continuation vehicles, the rebound in activity may be a sign that LPs and GPs are becoming more comfortable with these transactions. The Institutional Limited Partners Association (ILPA) published guidance for investors and fund managers on using continuation vehicles in May 2023, recommending that GPs ‘should pursue processes and deal structures that maximize alignment and LP engagement.’


The opinions and facts included within the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin providing the information in this content accepts no liability for any decisions taken in relation to the above.