StepStone’s latest GP‑led market study shows continuation vehicles pulling ahead of traditional buyouts. Assets moved into CVs between 2020 and 2024 posted gross returns that topped 3.0x in more than 60 percent of cases, while only 28 percent of the broader buyout pool reached that multiple. The data suggests a widening gap in asset quality across the two segments and attract fresh capital.

Investors have chased CVs for their perceived defensive profile, betting that GP‑led structures can lock in cash‑flow streams while shedding legacy exposure. StepStone notes that the outperformance stems partly from selective asset transfers and tighter fee arrangements, which boost net multiples. However, the study cautions that the long‑term sustainability of these returns remains unproven and may influence pricing significantly.

Fund managers may interpret the gap as a signal to allocate more capital to continuation vehicles, potentially reshaping secondary market flows. Yet the uncertainty around future performance could prompt stricter due‑diligence standards and higher pricing discipline. For now, the divergence offers a clear benchmark for investors weighing CVs against traditional buyout exposure and could affect fund performance metrics.