Continuation funds in Europe have seen a surge in fundraising, with EUR 5.3 billion raised by mid-2025, nearing the 2024 record of EUR 7.7 billion.
Continuation funds allow extending the lifespan of successful assets from existing PE funds by spinning them into new vehicles.
Growth in continuation funds reflects the need to provide liquidity to investors while retaining valuable assets, but caution is advised against overuse.
European VC funds reaching maturity and regulatory complexities drive the growth in continuation funds, especially in sectors like fintech, which is experiencing increased acquisitions in 2025.