MPEP partner Moritz warned that the continuation‑vehicle market is moving through a full cycle of denial to acceptance, likening current sentiment to the five stages of grief. Fresh capital inflows and novel fund structures appear each month, yet a vocal minority still complains about perceived conflicts of interest in cash‑flow vehicles.

Industry observers note that not all DPI returns are equal, a point underscored at a recent conference where HIG and Permira executives unveiled a dedicated healthcare continuation shop. By carving out sector‑specific pools, they aim to mitigate the “one‑size‑fits‑all” criticism and attract investors seeking clearer risk‑adjusted outcomes.

The debate has practical implications for limited partners weighing allocation decisions. Those embracing the new models anticipate better alignment and potentially higher exit multiples, while skeptics fear fee erosion and opacity. As fund sponsors experiment with hybrid structures, the market’s next move will hinge on whether investors can reconcile growth ambitions with governance concerns.

Overall, the continuation fund arena is at a crossroads: momentum builds, but lingering doubts about transparency could shape capital flows for the coming year.