GP-led continuation vehicle volume hit an all-time high in 2025, surpassing $100 billion for the first time, yet record growth hasn't translated to widespread LP satisfaction. While CVs enable GPs to extend hold periods for trophy assets and expedite distributions in a liquidity-constrained environment, some investors have experienced significant setbacks when companies rolled into CVs have filed for bankruptcy.

LP frustrations primarily stem from execution issues rather than conceptual problems with CVs. Common pain points include truncated timelines, diluted alignment of interest, and opaque valuations. Only 16 percent of LP respondents feel they're always given enough time to evaluate CV options without being forced to roll or sell. The resource constraints LPs face when assessing individual assets, rather than managers, compound these challenges.

Valuation transparency remains a critical concern, with LPs demanding market-tested valuations over fairness opinions alone. Industry experts emphasize that GPs must demonstrate genuine win-win-win scenarios for all parties involved. As one executive noted, there's "little margin for error" in CV transactions. The path forward requires GPs to explore all liquidity options before pursuing CVs, offer true status quo alternatives, and implement more LP-centric processes with standardized disclosure packages and transparent pricing.