Limited partners need better engagement in continuation vehicle transactions, according to Lexington Partners partner Christophe Browne. Speaking at PEI's NEXUS 2026 conference in Orlando, Browne emphasized that these deals must be structured to genuinely appeal to LPs through fair and transparent frameworks. The industry has made progress on continuation vehicles, but significant work remains to optimize LP participation.

A persistent challenge involves creating structures that give LPs real choices between liquidity and rollover options. Browne noted that LPs often face overwhelming election forms across multiple continuation vehicles, making adequate decision-making time critical. The rollover rate has stagnated at approximately 15 percent over the past five to six years, suggesting structural improvements could benefit the entire market.

The single-asset continuation vehicle market increasingly resembles traditional buyout strategies, with established firms entering the space. However, Browne believes new entrants won't dramatically shift market dynamics due to insufficient capital relative to transaction volume. He estimates the market operates at only one-fifth of its potential capacity, creating substantial room for growth if structural barriers to LP participation can be addressed.