The continuation vehicle (CV) market is shifting toward standardized fee structures as industry practices evolve, according to Morgan Lewis. Partner Joe Zargari highlights that terms like management fees are becoming more uniform, reflecting a broader emphasis on best practices over deal-speed prioritization. This trend signals market maturation and increased transparency in secondary transactions.

Management fees, once highly variable, now show convergence as firms align with industry norms. Morgan Lewis’ annual CV report underscores this shift, noting that standardized terms reduce negotiation friction and enhance predictability for investors. The firm attributes this to growing demand for consistency in a competitive landscape.

The standardization trend extends beyond fees, with deal structures increasingly reflecting shared benchmarks. Analysts suggest this reflects institutional investors’ push for clarity in complex transactions. While deal terms remain flexible, the move toward best practices indicates a more structured secondary market.

This development matters for investors seeking stability in volatile markets. Standardized terms could streamline transactions and reduce legal risks, though some may resist losing negotiation leverage. Morgan Lewis’ findings highlight a pivotal moment in CV market evolution, balancing efficiency with traditional flexibility.