Munich Private Equity Partners' Hans-Christian Moritz applied the five-stage CV grief model to the continuation fund industry's evolving liquidity landscape. The sector sees rapid changes—new entrants, structures, and records—yet remains divided, with some investors embracing CVs while others grapple with perceived conflicts of interest.

This divide stems from the industry's transition to a new liquidity reality. While a growing number of investors support CVs (continuation vehicles), others struggle with their inherent conflicts of interest. The rapid evolution of the continuation fund space has left the industry in a state of adjustment, mirroring the stages of grief described by Moritz.

The industry's division over CVs highlights the challenges of adapting to new market structures. Investors must navigate the balance between embracing the potential benefits of CVs and addressing concerns about conflicts of interest. This tension will shape the future of continuation fund investments.

The continuation fund industry is currently experiencing a period of adjustment as it grapples with the new liquidity reality imposed by CVs. The division over these vehicles reflects the challenges of adapting to market changes.