Secondaries investors are increasingly requesting advisers source fund financing for continuation vehicles to boost returns, a speaker at the European Fund Finance Symposium in London revealed. This marks a notable shift in market sentiment toward complex financing structures that were previously viewed skeptically.

Five to seven years ago, financing facilities like subscription lines and net asset value loans for CVs generally attracted a "negative to neutral" response from most secondaries investors. Today, the majority view these tools as neutral or positive, indicating growing comfort with leveraged secondaries strategies as the market matures.

The shift reflects broader trends in private equity where investors seek yield enhancement and extended holding periods. Continuation vehicles allow GPs to maintain prized assets while providing liquidity to LPs, but require sophisticated financing to optimize structures.

This evolving acceptance suggests secondaries markets are becoming more sophisticated, with investors recognizing financing tools can unlock value without compromising portfolio quality. The trend points to deeper institutional adoption of complex secondaries transactions.