Key Takeaways
- • Schroders Capital forecasts the private equity continuation market will exceed $330bn by 2035, reflecting sustained structural demand for extended fund lifecycles.
- • Continuation deal volumes demonstrated momentum, rising from $76bn in 2024 to $82bn in 2025, indicating accelerating market growth trajectory.
- • Structural dynamics are extending private equity ownership periods, suggesting fundamental shifts in fund economics and investor preferences toward continuation strategies rather than traditional exits.
Summary
Schroders Capital released its annual continuation investments research on 3 July 2026, projecting that the private equity continuation market will surpass $330bn (£247bn) by 2035. The forecast underscores the continued expansion of a market segment that has become increasingly central to private equity fund management.
The data reveals notable momentum in deal activity over the past two years. Continuation deal volumes increased from $76bn (£57bn) in 2024 to $82bn (£61bn) in 2025, representing an 8% year-over-year increase. This trajectory suggests the market remains on track to achieve the projected $330bn milestone within the next nine years, assuming continued growth at comparable rates.
According to Schroders Capital's analysis, the underlying driver of this expansion is rooted in structural dynamics that are fundamentally altering private equity ownership patterns. Rather than pursuing traditional exit strategies at the end of fund lifecycles, general partners and their investors are increasingly utilizing continuation vehicles to extend holding periods. This shift reflects evolving attitudes toward portfolio companies, improved operational performance, and favorable market conditions that make extended ownership more attractive than realizing gains through conventional sales or IPOs.
The continuation market has evolved into a critical mechanism for managing fund lifecycles and maximizing value creation in private equity. By rolling existing portfolio companies into new continuation funds, sponsors can avoid forced exits, maintain operational control, and potentially generate additional returns during extended holding periods. This structural feature has attracted significant institutional capital and is expected to become an increasingly important component of the overall private equity ecosystem.
The data reveals notable momentum in deal activity over the past two years. Continuation deal volumes increased from $76bn (£57bn) in 2024 to $82bn (£61bn) in 2025, representing an 8% year-over-year increase. This trajectory suggests the market remains on track to achieve the projected $330bn milestone within the next nine years, assuming continued growth at comparable rates.
According to Schroders Capital's analysis, the underlying driver of this expansion is rooted in structural dynamics that are fundamentally altering private equity ownership patterns. Rather than pursuing traditional exit strategies at the end of fund lifecycles, general partners and their investors are increasingly utilizing continuation vehicles to extend holding periods. This shift reflects evolving attitudes toward portfolio companies, improved operational performance, and favorable market conditions that make extended ownership more attractive than realizing gains through conventional sales or IPOs.
The continuation market has evolved into a critical mechanism for managing fund lifecycles and maximizing value creation in private equity. By rolling existing portfolio companies into new continuation funds, sponsors can avoid forced exits, maintain operational control, and potentially generate additional returns during extended holding periods. This structural feature has attracted significant institutional capital and is expected to become an increasingly important component of the overall private equity ecosystem.
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