Fund Continuations, APAC Private Credit & Secondary Market Pricing Trends Revealed

We are witnessing the return of fund restructurings as a preferred mechanism for GPs to manage liquidity and portfolio risk as traditional exit channels remain constrained. The case of Trilantic Capital Partners exploring a fund restructuring via continuation fund underscores this trend. Trilantic aims to repurpose most of Fund VI—originally closed at $2.75 billion in 2019—into a new vehicle with fresh capital, instead of launching Fund VIII amidst a challenging fundraising environment [1]. This structure allows GPs to monetize assets, reset fee and carry economics, and provide LPs with optional liquidity via sale or repositioned exposure.

These GP-led restructurings are unfolding amid record high secondaries volumes: closed transaction volumes in 2024 reached ~$162 billion globally (LP-led and GP-led combined), up ~45% year-on-year [5], [6]. Continuation vehicles (CVs), especially single-asset ones, are now a core part of GP-led activity due to their ability to isolate high‐quality assets and align incentives [6]. According to the recent Proskauer report, nearly two-thirds of GP-led deals in a sample from Q3 2024 to Q2 2025 were single-asset, with many deals exceeding $500 million, showing scale and selectivity [10].

Turning to Asia-Pacific private credit: fundraising dropped sharply in 2024 to ~$5.4–5.9 billion, a multi-year low, [2]. Deployment also fell significantly, reflecting macroeconomic headwinds—slower growth in China, trade tensions, and regulatory uncertainty [2]. Yet several reports anticipate strong growth ahead: the APAC market is projected to grow at ~16% CAGR from ~US$59 billion in 2024 to ~US$92 billion by 2027, supported by institutional and wealth sector inflows and unmet financing needs in growth, infrastructure, and SME lending [4], [8].

Pricing dynamics in secondaries show signs of recovery. LP-led portfolios are trading at narrower discounts—around 10-15% off NAV—with buyout funds performing strongest (~10-12% discount), while venture/growth and mid-market segments still lag [5], [11]. Bid-ask spreads are tightening, and younger vintage funds are commanding better pricing [5]. Buyers are increasingly sophisticated: deferred consideration, RWI policies, LPAC protections, and deal size integrity are nontrivial negotiation levers [10].

Strategic implications for GPs, LPs, and secondary buyers include:

• GPs with hard-to-exit assets may increasingly choose restructurings or continuation vehicles to extend runway or reset economics when raising new flagship funds is difficult.
• LPs will face decisions about whether to support continuation vehicles, accept exit via secondary sale, or view potential diluted economics; governance arrangements (LPAC, fee cuts) will become more material.
• Secondary buyers and funds need to be alert to pricing trends, especially for high-quality vintage assets, and be prepared for creative deal terms including deferrals, warranties, or senior protections.
• In APAC private credit, early movers in real estate debt, infrastructure, and non-bank direct lending might benefit disproportionately; local regulatory and legal environments, and reliance on non-banking sources, will shape risk vs reward.