Continuation Vehicles: The New Test of GP–LP Alignment

Insights from STP’s October 14 Webinar on Liquidity, Alignment & Advantage

During STP’s October 14 webinar, industry leaders explored where co-investment and continuation vehicles are heading. One theme was clear: while co-invest conversations still dominate inboxes, continuation vehicles are where real change is happening and where LPs are setting a new bar for GP alignment.

Originally viewed as niche liquidity mechanisms, continuation vehicles are evolving into deliberate portfolio strategy tools. Managers are now using them to manage pacing, carry realignment, GP succession planning, and track record curation. This is a shift from “How do we extend?” to “How do we architect capital partnerships more intentionally?”

As discussed during the session, LP expectations have matured dramatically. The question is no longer “What’s the fee break?” — it’s “Does the rationale deserve another hold period?”

We’re seeing LPs respond to:

• Rationale over access — Access is now a baseline. A clear strategic explanation is what earns engagement.
• Process as credibility — Fairness opinions, LPAC engagement, and transparent election windows are seen as trust infrastructure, not deal mechanics.
• Operational discipline — LPs notice when a process feels structured and intentional versus reactive and improvised.

One clear takeaway from the panel: these vehicles are a full-firm exercise, not a deal team task. Successful execution requires coordinated IR communication, investor onboarding support, and alignment with service providers. How a GP runs the process is increasingly part of how LPs evaluate the partnership.

Continuation vehicles are poised to reshape how firms think about:

• Portfolio maturity and optionality
• Leadership and carry transition structures
• Future fundraising narrative and track record clarity

This is not just a transaction trend — it’s a shift in GP–LP relationship design.

As surfaced in the October 14 discussion, GPs who view continuation vehicles as an expression of long-term partnership, not just liquidity engineering, will build lasting credibility. LPs are watching the narrative, the process, and the intent. And they are remembering who treats this as an aligned capital strategy.