October 20, 2026 (Washington, D.C.) – The Institutional Limited Partners Association (ILPA) today released Continuation Vehicles: Advancing Alignment Through Best Practices, new industry guidance for today’s maturing GP-led secondaries market, in which continuation vehicles (CVs) have become an established avenue for GPs to exit investments while delivering liquidity, access to new capital, and LP optionality.
As CVs become a larger part of the private equity market, the guidance emphasizes the need for greater consistency in market practices, and specifically the importance of enhanced transparency, governance, and GP-LP alignment to manage the inherent conflicts.
“Continuation vehicles have evolved from a relatively niche solution into a commonplace feature of private markets,” said Jennifer Choi, ILPA CEO. “With continuation vehicles now representing roughly 14% of sponsor-backed exits globally, the market has reached a point where participants benefit from clearer expectations around transparency, conflict management, and informed decision-making. This guidance reflects today’s market environment and is intended to help participants navigate these transactions with greater clarity and confidence.”
“Continuation vehicles involve significant decisions for both LPs and GPs, often in situations where interests may not be perfectly aligned,” said Scott Ramsower, Head of Private Equity Funds at Teacher Retirement System of Texas and Chair of the ILPA Board of Directors. “As these transactions have become more common, the need for a more transparent and consistent process has become apparent. This new guidance reflects ILPA’s commitment to helping industry participants navigate these transactions more effectively.”
Building on ILPA’s 2023 guidance, the new framework emphasizes that CVs should be deliberate solutions rather than default exit options. Key recommendations include early LP engagement, robust conflict disclosure, independent price validation, more standardized information in election materials to support informed decision-making, adequate review periods, and greater transparency around fees, costs, and transaction economics.
The guidance is principles-based, recognizing that there is no one-size-fits-all approach to CV transactions. It is intended to strengthen GP-LP alignment, support informed investor decision-making, and provide a practical foundation for navigating these transactions with greater transparency and confidence.
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