Global buyout firms are entering complex funding arrangements with private markets managers including Apollo and Bain, seeking to address investor frustration over the lack of cash returns.

Buyout firms accumulated close to $4 trillion in assets acquiring companies at elevated valuations during the low-rate period. With rates now higher, many are unable to exit those investments and return capital to limited partners.

The secondaries market has absorbed part of that pressure. Volume reached $121 billion in H1 2026, up 19% year-on-year, with GP-led transactions accounting for $65 billion, or 54% of the total, the highest recorded share. Campbell Lutyens data shows single-asset continuation vehicles represented 62% of GP-led volume in the period, transacting at an average discount to NAV of 2.9%.

The Wall Street Journal reported in August that the industry's zombie fund problem is worsening. Zombie funds are vehicles at least ten years old that have not liquidated all portfolio companies or distributed proceeds to investors.

ILPA closed a public comment period on 5 August 2026 for revised continuation vehicle guidance, addressing conflicts management, commercial rationale, and pricing defensibility. Final guidance is expected later this year.