Weekly Fund Highlights: Notable fundraising achievements in the private equity sector
In the dynamic world of private equity, institutional demand for liquidity is reshaping the landscape. This trend is putting increasing pressure on general partners (GPs) to provide more cash distributions to limited partners (LPs), who are seeking liquidity before committing to new funds.
One of the latest responses to this demand comes from Morgan Stanley Investment Management, which has introduced the North Haven Private Assets Fund, its first evergreen private equity fund. Designed to provide high-net-worth investors with institutional-quality access to private equity strategies, the strategy of the North Haven Private Assets Fund offers individual investors enhanced liquidity compared to the more traditional closed-end model.
Similarly, Corsair Capital has closed a $600 million continuation vehicle and secondary fund. The Corsair continuation fund, Corsair Riva, L.P., is structured to offer existing investors optional liquidity and enables Corsair to retain ownership of three strategically positioned portfolio companies. This marks Corsair Capital's first multi-asset transaction of this kind. The deal for the Corsair continuation fund was led by secondaries specialist Coller Capital.
Meanwhile, Mérieux Equity Partners has reached the first close of its €150m Mérieux Innovation 2 (MI2) fund. The MI2 fund aims to back around 15 EU-based ventures, with Initial investments typically being around €6m. Mérieux Equity Partners has already invested €6m in Spanish diagnostics firm deepull as its first deployment.
Elsewhere, Provectus SEE Fund II, a €200m private equity vehicle managed by Croatian firm Provectus Capital Partners (PCP), is focusing on providing equity and equity-related capital to small and medium-sized enterprises across Southeast Europe. The focus areas for Provectus SEE Fund II include Croatia, Slovenia, Romania, and Bulgaria, with potential investments in other countries like Albania, Bosnia and Herzegovina, Greece, Hungary, Kosovo, Montenegro, North Macedonia, and Serbia. The European Bank for Reconstruction and Development (EBRD) is considering a €25m equity investment in Provectus SEE Fund II.
Apollo Global Management has also entered the scene, raising $5.4 billion for its first secondaries fund, S3 Equity and Hybrid Solutions.
The current trend in private equity funds regarding institutional demand for liquidity involves a shift towards enhanced liquidity alternatives such as minority stake sales, dividend recapitalizations, secondaries continuation vehicles, and net asset value (NAV) financings. These alternative structures have collectively secured around $410 billion, helping managers unlock liquidity from aging portfolios, especially amid a stalled exit market in 2025.
However, there is growing institutional pressure for GPs to generate liquidity through more conventional exits, such as trade sales, secondary buyouts, and IPOs, rather than relying heavily on complex financial engineering. Exit activity has shown some recovery with high-quality assets, particularly in sectors like technology and services, continuing to command premium valuations and providing some liquidity through strategic sales and secondary buyouts. IPO activity is reopening but remains selective and narrow, with fintech and biotech sectors performing better than industrial or consumer sectors.
Managers face challenges deploying dry powder due to economic uncertainty and high interest rates making leveraged buyouts more expensive, which, coupled with the pressure to provide liquidity, contributes to fundraising and deployment caution.
In summary, institutional demand for liquidity in private equity funds is driving an increased reliance on enhanced liquidity alternatives to supplement traditional exit routes amid a challenging fundraising environment and slower exit market. However, LPs are pushing for more cash realization through conventional exits, signaling a shift or at least an added emphasis on straightforward liquidity generation for 2025 onward.
- General partners (GPs) are under pressure to provide more cash distributions to limited partners (LPs), as institutional demand for liquidity reshapes the private equity landscape.
- Morgan Stanley Investment Management has launched the North Haven Private Assets Fund, an evergreen private equity fund, to offer high-net-worth investors enhanced liquidity compared to traditional closed-end models.
- Corsair Capital has closed a $600 million continuation vehicle and secondary fund, Corsair Riva, L.P., which provides optional liquidity to existing investors and enables the firm to retain ownership of three portfolio companies.
- Mérieux Equity Partners has reached the first close of its €150m Mérieux Innovation 2 (MI2) fund, aiming to back around 15 EU-based ventures with initial investments typically being around €6m.
- Provectus SEE Fund II, a €200m private equity vehicle managed by Croatian firm Provectus Capital Partners (PCP), is focusing on providing equity and equity-related capital to small and medium-sized enterprises across Southeast Europe.
- Apollo Global Management has raised $5.4 billion for its first secondaries fund, S3 Equity and Hybrid Solutions, as the trend in private equity funds involves a shift towards enhanced liquidity alternatives such as minority stake sales, dividend recapitalizations, and net asset value (NAV) financings.
- In 2025, institutional pressure for GPs to generate liquidity through more conventional exits like trade sales, secondary buyouts, and IPOs is growing, signaling a shift towards straightforward liquidity generation for the future.
