- Trilantic is launching a full-fund continuation vehicle to move roughly 17 Fund VI (2017 vintage) assets into a new, capitalized structure.
- Blackstone Strategic Partners and Neuberger Berman are leading the deal with at least $600 million in commitments and pricing reportedly 30–40% below NAV.
- Existing LPs can roll into the CV or cash out at the discounted price, a choice likely shaped by weak exit markets and valuation tension.
- The transaction is seen as a precedent-setting GP-led model for mid-market managers facing fundraising headwinds, with fresh “staple” capital to support add-ons and value creation.
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Trilantic’s CV proposal reflects the growing prevalence of continuation vehicles as tools for private equity firms to manage portfolio maturity challenges and fundraising headwinds. In this case, Trilantic seeks to provide liquidity to LPs while retaining upside in core assets. Blackstone and Neuberger’s involvement brings institutional credibility and capital firepower to a transaction shaped by market pressure on mid-market fundraisings.
The discounts on offer—approximately 30% earlier in the process, increasing to about 40% in some sources—signal tension between what exiting LPs wish to receive and what new capital providers believe those assets are worth, particularly in light of slumping exit markets and slower M&A. The depth of the discount will likely influence LP decision-making: whether to sell, roll, or hold. Those choices will affect Trilantic’s ability to raise future funds (noting Fund VII was significantly under target) and its reputation among investors.
The strategic schema includes a “staple” of fresh capital intended to enable Trilantic to continue making add-on investments or generate growth in the continuation fund, thereby aiming to avoid the stagnation or value erosion sometimes seen in tail-end assets. With lead investors like Blackstone and Neuberger, Trilantic may gain alignment interests and credibility that support performance and potential exit paths. Nevertheless, such deals carry risks: possible LP dissent, valuation disputes, and challenges in eventually exiting assets if market conditions remain unfavorable.
For Blackstone Strategic Partners and Neuberger Berman, this investment fits neatly into their broader GP-led secondary strategy. Neuberger’s recent fund (NB Strategic Capital II) closed at over $4 billion, quadruple its predecessor, underscoring increasing LP appetite for such structures. For Blackstone, participating in this CV not only enhances exposure to mid-market assets but also reinforces its position in secondary liquidity solutions.
Strategic implications for the broader PE ecosystem include: CVs becoming a staple for mid-market firms when raising entirely new funds is difficult; LPs increasingly evaluating exit vs. roll decisions in sharp NAV discount contexts; potential pressure on GP fee/term structures to accommodate LP concerns; and the importance of transparency and governance (e.g., LP advisory committees) to avoid conflicts or perception of inequitable outcomes.
Open questions remain: What exit timeline and strategy will the CV pursue? How will fees, carry, and governance align for those rolling versus those exiting? To what extent will this transaction influence mid-market fundraising patterns in 2026? And how will this deep discount affect investor confidence in future Trilantic funds?
Supporting Notes
- Lead commitments: Blackstone’s Strategic Partners and Neuberger Berman are positioned as lead investors in Trilantic’s CV, combining for at least $600 million with splits of approximately $400 million and $200 million respectively.
- Assets involved: Around 17 portfolio companies from Trilantic Capital Partners VI (2017 vintage) are proposed to be transferred into the continuation vehicle.
- Discounts: Early in process LPs were being offered ~30% discount to NAV; some sources indicate the current offer is steeper, around 40%.
- Fund VI size: Trilantic closed Fund VI on $2.75 billion in 2019, outperforming its $2.25 billion target.
- Fundraising challenges: Fund VII targeted $3 billion but raised only ~$515.8 million, with combined assets across its parallel vehicles of ~$605.2 million. Fund VIII has not yet been filed.
- Continuity (“staple”) capital: The deal includes fresh capital to allow for further investment or value-creation via add-ons.
- LP options: As in most GP-led CVs, existing LPs can elect to roll their interest or accept cash; but cash exit is less attractive due to deep discount.
- Approval: Fund VI’s limited partner advisory committee has approved movement of assets into the new CV.