Private equity managers are increasingly adopting sector-focused multi-asset continuation vehicles to achieve critical mass and capitalize on industry tailwinds, according to Elm Capital's 2025 Private Markets Review. Mid-market managers are particularly embracing this structure to group companies within the same sector, creating more focused investment opportunities. This trend reflects a strategic shift toward specialization in the secondary market.

The data shows that 60 percent of GP-led solutions discussed by Elm Capital last year had a sector focus, indicating strong market momentum. This approach allows managers to leverage shared industry dynamics and operational synergies across portfolio companies. The multi-asset structure provides flexibility while maintaining sector expertise, appealing to both managers and investors seeking targeted exposure.

As the secondary market evolves, sector-focused multi-asset CVs represent a significant development in private equity structuring. This trend demonstrates how managers are adapting to create more value through specialization while addressing investor demand for focused investment strategies. The shift toward sector concentration in continuation vehicles signals a maturing market that prioritizes strategic alignment and operational expertise.