ILPA Issues New Guidance on Continuation Vehicles
The group calls for enhanced transparency and fair fee structures for investors in secondary market transactions.
Updated on Oct. 26, 2026 in Investing
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The Institutional Limited Partners Association (ILPA) has released new guidance to protect investors as continuation vehicles become a standard tool for asset management. The association aims to address concerns regarding the potential for increased fees and carry costs when managers extend their hold over assets.
Why it matters
Continuation vehicles can force limited partners to accept full-fee structures on assets that were previously held under lower-cost co-investment terms. This guidance provides a framework for transparency to prevent unexpected costs and ensure investors have sufficient time to evaluate their positions.
The secondary market reached a total volume of $226 billion in 2025, representing a 41% year-over-year increase. ILPA now recommends that institutional investors be granted at least 20 business days to make decisions on new continuation vehicle deals.
The players
Institutional Limited Partners Association
This global organization represents more than 600 institutional investors and works to advocate for the interests of limited partners in the private equity industry.
The details
The new standards from the ILPA, which represents more than 600 institutional investors, emphasize the need for independent price validation and the early involvement of limited partner advisory committees. These measures are designed to standardize processes that are currently excluded from most existing co-investment agreements.
Timeline
The secondary market reached $226 billion in total volume during 2025.
ILPA released the new guidance for continuation vehicles in October 2026.
Market Dynamics
This new guidance follows a pattern set by the ILPA Principles by formalizing governance expectations for private markets. It represents a significant effort to normalize oversight in a sector where transaction terms have historically been governed by varied, individual contracts.
Limited partners can use these guidelines to request 20-day review periods and independent pricing on future continuation vehicle offers. These standards help investors avoid being locked into higher fee structures without proper due diligence or transparency.
The takeaway
Investors should review their existing co-investment agreements to see how they align with these new transparency recommendations. Ensuring independent price validation for these deals is a critical step for maintaining asset performance transparency.
Further reading
For more information on current private market standards, visit the Investing section.
Source note: This article includes information reported by Pitchbook.
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