Private equity is selling to itself at scale. Buyout firms routed a record share of exits through so-called continuation vehicles in 2025, as weak IPO markets and cautious buyers kept traditional sales out of reach, Financial Times reports.

About one in five PE exits this year used continuation structures, up from roughly 12-13% in 2024. Advisers estimate USD 100-107 bn of assets have moved through these vehicles in 2025 — an annual record — with even large, previously cautious managers such as EQT now planning to use the structure for select holdings.

This isn’t new. As we’ve previously noted, continuation agreements have been on the rise as IPO markets froze and other exit routes narrowed. While global IPOs saw a modest rebound in 9M 2025 — led by Saudi Arabia and other MENA countries — exits in the US and Europe remain patchy, keeping self-sales in play.

Why it works: Continuation agreements let managers return some capital without fully exiting, keeping exposure to assets they still back. One adviser called them a “popular and effective [triple-W] liquidity solution in a stressed exit environment,” with valuations still recovering from 2024 lows.

These vehicles can reset economics on ageing assets, creating fresh fee streams and extending performance upside at a time when full exits remain hard to execute.

Still, some pension funds remain uneasy about conflicts when firms act as both seller and buyer. Bain found nearly two-thirds of PE investors still prefer traditional exits — trade sales or IPOs — even as self-sales become more common.

MARKETS THIS MORNING-

2025 is ending on another mixed note for Asia-Pacific markets, which are broadly down in early trading. Hong Kong’s Hang Seng Index is down, while mainland China’s CSI 300 is beginning to trade up after as fresh data shows manufacturing activity in China rose for December — a first since March. Japan and South Korea’s markets are closed for the day. Wall Street looks set to open in the red, with futures trading down.

TASI

10,382

-1.0% (YTD: -13.8%)

MSCI Tadawul 30

1,378

-0.8% (YTD: -8.7%)

NomuC

23,041

-1.0% (YTD: -26.8%)

USD : SAR (SAMA)

USD 3.75 Sell

USD 3.75 Buy

Interest rates

4.25% repo

3.75% reverse repo

EGX30

41,690

-0.1% (YTD: +40.2%)

ADX

9,964

-1.0% (YTD: +5.8%)

DFM

6,015

-2.0% (YTD: +16.6%)

S&P 500

6,896

-0.1% (YTD: +17.3%)

FTSE 100

9,941

+0.8% (YTD: +21.6%)

Euro Stoxx 50

5,796

+0.8% (YTD: +18.4%)

Brent crude

USD 61.25

-0.1%

Natural gas (Nymex)

USD 3.94

-0.8%

Gold

USD 4,381

-0.1%

BTC

USD 88,236

+1.1% (YTD: -5.6%)

Sukuk/bond market index

911.32

-0.06% (YTD: +1.02%)

S&P MENA Bond & Sukuk

151.88

+0.1% (YTD: +8.5%)

VIX (Volatility Index)

14.33

+0.9% (YTD: -17.4%)

THE CLOSING BELL: TADAWUL-

The TASI fell 1% yesterday on turnover of SAR 3.2 bn. The index is down 13.8% YTD.

In the green: Sedco Capital Reit (+2.7%), Chubb (+2.7%) and Care (+1.7%).

In the red: Almasar Alshamil (-8.4%), Raoom (-6.8%) and Alkhaleej Training and Education (-6.6%).

THE CLOSING BELL: NOMU-

The NomuC fell 1%yesterday on turnover of SAR 18.7 mn. The index is down 26.8% YTD.

In the green: Apico (+11.7%), Balsam Medical (+8.9%) and Mayar (+7.1%).

In the red: SMC (-9.7%), Osool and Bakheet (-9.6%) and Al Naqool (-8.8%).

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