Orchard co-founder Scott Pasquini told Buyouts that the continuation vehicle market could grow as much as four times its current size. According to Buyouts Insider, this potential expansion stems from general partners (GPs) aiming to unshackle themselves from the timeline constraints of closed-end fund structures.
Market Growth Prediction
Pasquini, as co-founder of Orchard, believes the continuation vehicle market is undergoing a fundamental shift, with growth driven by GPs’ efforts to extend asset management beyond traditional fund timelines. He shared this view in an interview, highlighting how these vehicles allow for prolonged investment periods.
Reasons for the Shift
The growth outlook, as stated by Pasquini, is linked directly to the limitations of closed-end funds, which impose strict timelines on GPs. Widely known in private equity, continuation vehicles enable the transfer of assets to new funds, helping address these constraints, according to experts in the field.
Source and Context
Pasquini’s comments were published in Buyouts Insider, tagged with categories like Emerging Managers and Secondaries, reflecting broader interest in secondaries markets. According to Buyouts Insider, this interview underscores ongoing discussions among general partners about fund structures.
