Key Takeaways
- • Top-quartile continuation vehicles from 2018 vintage have returned 2.2x to 2.3x the cash (DPI) compared with top-quartile buyout funds from the same vintage, demonstrating significant outperformance in cash-on-cash returns across comparable time horizons.
- • Single-asset and multi-asset CVs show consistent TVPI and DPI outperformance over buyout funds across nearly all vintages, with 2019-vintage single-asset CVs generating a median TVPI of 1.54x versus buyout funds' 1.51x, establishing a durable performance advantage.
- • Top-performing CVs achieve an average IRR of 18%, substantially outpacing traditional buyout fund returns, according to Evercore's analysis of continuation vehicle performance.
- • The Evercore and HEC Paris fifth CV performance study expanded its dataset to 396 CVs formed between 2018 and 2024, up significantly from 140 funds in the inaugural report, providing broader empirical evidence of CV performance trends across vintages and geographies.
- • Top-quartile CV performance shows continued strength across multiple return metrics, with funds demonstrating sustained outperformance even as TVPI growth rates moderate in years four and seven, indicating the resilience of the continuation vehicle asset class.
Summary
Continuation vehicles have established a clear performance edge over traditional buyout funds, according to research from Evercore and HEC Paris. The latest findings confirm that both single-asset and multi-asset CVs have outperformed comparable buyout funds across multiple return metrics, including Total Value to Paid-In Capital (TVPI) and Distributions to Paid-In Capital (DPI), across nearly all vintages examined.
The performance gap is particularly pronounced at the top quartile. CVs from the 2018 vintage have returned 2.2x to 2.3x the cash of top-quartile buyout funds from the same period, demonstrating that continuation vehicles deliver significantly higher cash distributions relative to capital invested. Additionally, top-performing CVs achieve an average IRR of 18%, substantially outpacing traditional buyout fund returns. In the 2019 vintage, single-asset CVs generated a median TVPI of 1.54x compared with 1.51x for buyout funds, illustrating consistent but measurable outperformance.
Evercore's fifth annual CV performance study provides the most comprehensive dataset to date, analyzing 396 continuation vehicles formed between 2018 and 2024. This represents a significant expansion from the 140 funds included in the inaugural report, allowing for more robust conclusions about CV performance trends across geographies and fund structures. The expanded sample strengthens the evidence base for institutional investors evaluating whether continuation vehicles merit portfolio allocation relative to traditional buyout managers.
Top-quartile continuation vehicles continue to outperform materially even as their TVPI growth trajectories moderate in later holding periods (years four and seven), suggesting that the outperformance is not merely a function of early-stage value creation but reflects sustained competitive advantages in portfolio optimization and exit execution. For institutional investors and family offices allocating capital to private equity, these findings suggest that top-performing CVs merit consideration as a distinct asset class with a more favorable risk-adjusted return profile than traditional buyout funds at comparable quartile levels.
The performance gap is particularly pronounced at the top quartile. CVs from the 2018 vintage have returned 2.2x to 2.3x the cash of top-quartile buyout funds from the same period, demonstrating that continuation vehicles deliver significantly higher cash distributions relative to capital invested. Additionally, top-performing CVs achieve an average IRR of 18%, substantially outpacing traditional buyout fund returns. In the 2019 vintage, single-asset CVs generated a median TVPI of 1.54x compared with 1.51x for buyout funds, illustrating consistent but measurable outperformance.
Evercore's fifth annual CV performance study provides the most comprehensive dataset to date, analyzing 396 continuation vehicles formed between 2018 and 2024. This represents a significant expansion from the 140 funds included in the inaugural report, allowing for more robust conclusions about CV performance trends across geographies and fund structures. The expanded sample strengthens the evidence base for institutional investors evaluating whether continuation vehicles merit portfolio allocation relative to traditional buyout managers.
Top-quartile continuation vehicles continue to outperform materially even as their TVPI growth trajectories moderate in later holding periods (years four and seven), suggesting that the outperformance is not merely a function of early-stage value creation but reflects sustained competitive advantages in portfolio optimization and exit execution. For institutional investors and family offices allocating capital to private equity, these findings suggest that top-performing CVs merit consideration as a distinct asset class with a more favorable risk-adjusted return profile than traditional buyout funds at comparable quartile levels.
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