Private equity continuation market tipped to quadruple by 2034

InvestorDaily

Growing investor demand, structural supply-side factors and a shift in strategy across the buyout landscape is expected to see annual exit values from continuation investments increase 329 per cent by 2034, according to new analysis by Schroders Capital. In 2024, continuation-related buyout and growth capital exit value had already reached close to US$45 billion, representing around 7 per cent of buyout and growth-related private equity distributions. When including the new capital being injected in such transactions, as well as continuation investments outside of buyout and growth capital such as venture capital, private debt and infrastructure, the total continuation transaction volume reported by independent market advisers set a new record of more than US$70 billion.

Annual exit values from continuation investments are expected to quadruple over the next decade, up to approximately US$300 billion, based on forecasts by Schroders Capital. Schroders Capital chief investment officer Nils Rode said even conservative estimates still show significant growth for the continuation investment market. “Under more optimistic assumptions, this growth could be even higher,” Rode said.

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