$63 Billion Continuation Fund Boom Under Spotlight in New CFA Institute Report

A new report from the CFA Institute Research and Policy Center spotlights the rapid rise of continuation funds in the first of a new three-part research series focused on ethics in private markets.

The report, Continuation Funds: Ethics in Private Markets, demystifies the fast-growing market for continuation funds and sets out issues concerning liquidity, alignment, and conflicts of interest. The findings provide salient insights as policymakers worldwide increasingly weigh in on private market regulation and retail access.

Continuation funds — once derided as “zombie funds” but now marketed as holding “trophy assets” — surged to an estimated $63 billion in transactions in 2024, against the backdrop of a liquidity drought that has left private equity buyout funds globally with 29,000 unsold portfolio companies valued at $3.6 trillion, and distributions to investors at their lowest level in more than a decade*.

Stephen Deane, CFA, Senior Director, Capital Markets Policy, CFA Institute and lead author of the report, comments:

“Continuation funds are designed to give investors choice: Those who want liquidity can cash out, and those who want to continue their investment can roll over into the new continuation fund. Many investors are happy to take the money, but some dismiss continuation funds as merely a transfer of economic benefits to the fund managers. The GP sits on both sides of the deal, stands to reset carry and extend fees if successful, and may even improve the track record of the legacy fund – all factors that can give rise to conflicts of interest. Continuation vehicles make for a central case study in how liquidity, alignment and governance come together in private markets.”

Ken Robinson, CFA, CIPM, Director, Global Industry Standards, CFA Institute and co-author of the report, comments:

“Continuation funds have grown rapidly as liquidity pressures mount, but they are poorly understood outside specialist circles. Grounded in the perspectives of both General Partners and Limited Partners, our research aims to provide an impartial foundation for the wider debate about ethics in private markets.”

In Continuation Funds: Ethics in Private Markets, CFA Institute draws on interviews with more than 30 senior industry professionals across North America, Europe, and the Middle East, and incorporates the findings of focus groups among investment industry stakeholders globally.

To speak with the report’s authors, contact [email protected]. 

Notes to Editors

• Global continuation fund transactions reached an estimated $63 billion in 2024 (Jefferies, Global Secondary Market Review 2025).
• Private equity buyout funds face an exit overhang of 29,000 unsold portfolio companies valued at $3.6 trillion (Bain & Company, Global Private Equity Report 2025).
• Distributions fell to just 11% of NAV in 2024, the lowest level in more than a decade (Bain & Company, Global Private Equity Report 2025).

Webinar

Report authors Stephen Deane, CFA and Ken Robinson, CFA, CIPM will explore the issues of continuation fund liquidity, alignment, and conflicts of interest with a panel of industry practitioners at an upcoming CFA Institute webinar on 4 December 2025.  To register, visit: Webinar Registration - Continuation Funds: Ethics in Private Markets.