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LPs Expect Contingent Value Deals to Grow, Survey Shows

PE International •
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LPs are moving beyond treating contingent value (CV) deals as a stop‑gap for tough exits today, according to the latest Coller Capital Global Private Capital Barometer. The survey shows 40 percent of limited partners now expect CV activity to rise, signalling broader acceptance of these structures across private markets. Investors seek flexible exits.

The data also reveals that the share of general partners employing CV mechanisms has doubled, reflecting a shift in sponsor strategies. As more GPs embed these tools, demand for bespoke special purpose vehicles (SPVs) is surging, stretching back‑office resources and prompting firms to upgrade technology and compliance frameworks. Mid‑market funds are particularly active, using CVs to bridge valuation gaps during secondary transactions.

For investors, the trend translates into higher transaction volumes and more complex deal structures, which could compress fees but also create opportunities for firms that master the operational demands. Back‑office bottlenecks are prompting outsourcing and platform solutions, suggesting that the CV boom will reshape provider markets. Providers such as fund administrators and legal firms report a surge in requests for SPV set‑ups, driving billing rates.