Hannah Zhang

Roughly half of the CV's value is concentrated in two portfolio companies, Secondaries Investor understands.

While some investors recognise the benefits of evergreen funds participating in GP-led deals, others view the space as a ‘wild west’ that requires greater discipline.

Some GPs view continuation vehicles as 'temporary measures', according to the financial services firm.

Speaking at the CAIS Alternative Investment Summit last week, executives from both firms agreed asset quality has become a more important driver of returns.

Unrealised NAV sitting in PE funds will 'get bigger over the next five years before it shrinks', according to the firm's president Wil Warren.

LP-leds are a function of 'disciplined portfolio management', according to HMC chief executive NP Narvekar.

'Rolling LPs should be, but often are not, given a status quo option to retain the same economic terms of their investment,' according to the institute’s latest report on CVs.

'We tend to like single-asset continuation vehicles if the story is right [and] if it’s with a sponsor that we think is the right owner for that asset going forward,' according to deputy CIO Allen Waldrop.

While '40 Act funds haven't yet moved market pricing in GP-led deals, these evergreen funds are 'certainly are participating and creating syndicate demand', Baird's GP solutions group co-head Jeremy Duksin tells Secondaries Investor.

While there is growing demand for liquidity in the GP stakes market, significant structural barriers keep capital locked up.