Lenders and buyers are increasingly comfortable with leverage in continuation funds (CVs), but disagreements persist regarding its appropriate use. While financing tools are becoming standard for CVs, a unified stance among buyers on their widespread application is absent.

Five to seven years ago, financing options like subscription lines and net asset value (NAV) loans for CVs were met with a largely "negative to neutral" sentiment from secondaries investors, according to an executive at a secondaries advisory firm. This indicates a shift in perspective over time.

Despite this evolving acceptance, the debate continues on the optimal level and implementation of leverage. The industry is still navigating how best to integrate these financial instruments into continuation fund structures, balancing potential benefits with associated risks.