David Wachter, CEO of W Capital Partners, sees growing demand for structured solutions that allow general partners to retain assets within flagship funds rather than pursuing traditional continuation vehicles. Speaking at PEI's NEXUS 2026 conference in Orlando, Wachter highlighted strategies like direct secondaries and minority recapitalizations that provide liquidity while enabling continued asset growth.

These alternatives let GPs unlock value from longer-held assets without triggering new fund structures. W Capital focuses on preferred equity and structured solutions that give managers flexibility during market volatility. Wachter emphasized the importance of keeping high-quality assets inside flagship funds to compound returns, particularly as market conditions create what he calls a "K-curve" environment with increased external pressures.

The GP-led transaction market reflects this trend, with overall volume surging from $70 billion in 2024 to $106 billion in 2025 according to Evercore's Secondary Market Report. Non-continuation vehicle deals specifically reached $12 billion last year, up from $8 billion the previous year. W Capital remains selective, evaluating assets for exposure to tariffs, artificial intelligence disruption, and geopolitical risks before pursuing opportunities.