According to Martha, tender offers of LP interests came first, followed by GP-led transactions that evolved into strip sales of assets and later into single-asset transactions. Importantly, these transactions are not purely bound to continuation vehicles: they can also be structured as minority recaps through direct secondaries transactions with GPs, or structured solutions such as preferred instruments. These solutions allow GPs to create liquidity while retaining control and providing capital for future growth, Martha explains.

Mid-market companies are likely to be a dominant theme in the GP-led space, Martha believes. She says that large companies typically rely on strong IPO markets or large debt financing packages for exits. Conversely, mid-market companies have more exit optionality.

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