In today’s edition, Continuation funds activity outstrips traditional secondaries market activity; new ESG rules could chill private markets, and an APAC rainmaker resurfaces at an international GP.

Fresh Insights: A tale of two markets—Continuation funds and LP‑led sales: on diverging paths? (Source: Getty)

An interesting datapoint released last week caught Side Letter’s attention. The dollar‑volume of assets moved into continuation vehicles in the first half of the year outpaced the volume of LPs selling their fund interests on the secondaries market for the first time since 2021.

This shift signals a growing preference for continuation vehicles, suggesting that investors seek longer horizons and more control. Meanwhile, ESG regulators may tighten rules, potentially dampening deal flow in private markets.