Jenna O'Malley/PitchBook News
In the first half of 2026, a record number of private equity managers used continuation funds to return cash to their investors without having to sell companies. They also moved to capture a bigger slice of returns when that sale eventually comes.
By dollar volume, around 35% of continuation funds closing in the first six months of the year had premium economics, colloquially known as super carry, baked into their fund documents, according to investment bank Evercore. This compares with 15% in the bank's full-year 2025 survey.
While there is no single definition of what constitutes super carry, Evercore, the most active broker of continuation fund deals, defines it as terms that allow a fund manager to claim more than 20% of the profit generated by a deal.
The highest level of carry observed in a 2025 study of continuation funds by law firm Morgan Lewis was 30%. The firm, which often represents institutional investors in secondary deals, also noted that three-quarters of continuation funds had tiered carry structures. For example, in the case of a fund employing super carry, a 2x return might net the manager a 20% profit share, with a 3x return bringing it 30%.
#continuation #carry #funds
In the first half of 2026, a record number of private equity managers used continuation funds to return cash to their investors without having to sell companies. They also moved to capture a bigger slice of returns when that sale eventually comes.
By dollar volume, around 35% of continuation funds closing in the first six months of the year had premium economics, colloquially known as super carry, baked into their fund documents, according to investment bank Evercore. This compares with 15% in the bank's full-year 2025 survey.
While there is no single definition of what constitutes super carry, Evercore, the most active broker of continuation fund deals, defines it as terms that allow a fund manager to claim more than 20% of the profit generated by a deal.
The highest level of carry observed in a 2025 study of continuation funds by law firm Morgan Lewis was 30%. The firm, which often represents institutional investors in secondary deals, also noted that three-quarters of continuation funds had tiered carry structures. For example, in the case of a fund employing super carry, a 2x return might net the manager a 20% profit share, with a 3x return bringing it 30%.
#continuation #carry #funds
10 hours ago
