Limited partners are sharpening focus on continuation vehicles, especially single-asset funds, as doubts grow over LP-led secondary sales. Recent comments from the Florida State Board of Administration and Sweden’s Alecta signal caution about the return profile of traditional LP secondaries, prompting investors to reassess allocation strategies.

Despite mixed sentiment, demand for continuation vehicles has surged. Market participants cite the ability of single-asset structures to lock in high‑quality assets and extend holding periods without triggering a full fund sale. This flexibility appeals to LPs seeking stable cash flows amid volatile private‑equity markets.

The shift signals a broader rebalancing of secondary market dynamics. As LPs divert capital toward continuation vehicles, managers may see increased pressure to package assets in single‑asset formats, potentially reshaping pricing benchmarks for both primary and secondary transactions.