Neuberger Berman's Europe private equity chief Joana Rocha Scaff sees mid-life investments as a viable alternative to continuation fund deals that have grown increasingly complex. She explained that these investments can generate liquidity and realizations while avoiding complications when co-investors back an asset.

Mid-life solutions are gaining traction amid a shortage of private equity exits and payouts. Rocha Scaff noted that more than half of Neuberger Berman's fund of funds platform time is now devoted to working with general partners on these structures. The approach offers GPs a way to return capital to investors without the challenges of traditional continuation vehicles.

The shift reflects broader market dynamics as private equity firms seek creative ways to provide liquidity in a challenging exit environment. With IPO markets constrained and strategic buyers selective, mid-life transactions offer a practical bridge for portfolio companies stuck between private ownership and public markets.

This represents a significant evolution in how institutional investors approach portfolio management, particularly as GPs navigate extended holding periods for their investments. The trend suggests mid-life solutions could become a permanent fixture rather than a temporary workaround.