Goldman Sachs and Evercore are exploring a new generation of evergreen continuation vehicles that could allow private equity firms to retain portfolio companies for up to 15 years, according to a report by Bloomberg.
The investment banks, alongside Jefferies, Raymond James and Lazard, are reportedly discussing the structures with several major private equity managers and institutional investors, as sponsors seek greater flexibility over portfolio holding periods.
Unlike conventional continuation funds, which typically have five-year lifespans with two potential annual extensions, the proposed vehicles could hold assets for 10 to 15 years without pressure to pursue an exit.
The structures would also provide additional unfunded capital to support portfolio company growth, potentially allowing sponsors to retain high-performing businesses for longer.
Continuation funds accounted for just under half of the $121bn in global secondary transactions completed during the first half of 2026, according to Evercore.
The new structures could face greater scrutiny over carried interest arrangements and investor liquidity, with discussions continuing over potential exit mechanisms, including asset distributions, new investor capital and tender offers.
Bankers are also reportedly considering arrangements that would allow existing investors to realise holdings in exchange for commitments to new funds.
Sunaina Sinha Haldea, global head of private capital advisory at Raymond James, told Bloomberg that the market remained at an early stage, while Lazard’s global head of private capital advisory, Holcombe Green, expects structures to be tailored to individual transactions.
