Single-asset GP-led transactions have emerged as a core exit route, matching IPO volumes and offering investors access to high-performing assets. Innovative structures such as continuation vehicles, co-control partnerships and “CV squared” deals are reshaping the market, while lead buyers increasingly secure premium opportunities.
Explore how these key trends are driving this evolution and why they matter for investors focused on long-term value.
- Single-asset GP-led structures firmly established as “fourth” exit route in sponsor toolbox as the nature of “secondaries” evolves
GP-led secondaries have exceeded 10% of global sponsor-backed exit activity in 2023 and 2024 and are now comparable in capital volume to sponsor-backed IPO activity.[1],[2]
This growing prominence within the GP toolbox is not incidental. We believe that single-asset GP-leds specifically are fundamental departure from the traditional concept that secondary deals need to offer a “liquidity” solution. Our experience in the last seven years indicates that GP-led structures, if done with the right rationale, are driven by the desire to keep compounding returns of star assets that are difficult to identify and originate in an increasingly competitive primary buyout market.
Our view – “secondaries by name, but not by nature” – is based on a few fundamental differences between traditional secondaries and single-asset GP-led solutions.
The traditional perception of secondaries links to a few core characteristics, namely:
(i) a main goal of generating high velocity deployment (and return) of capital with returns below those achievable by a direct buyout strategy,
(ii) highly diversified exposure (with tens to hundreds of companies acquired at a time),
(iii) buyers are generalist in their selection approach when it comes to target company sector and size,
(iv) their analysis and diligence is predominately based on limited access to company-level information.
On the other hand, we now have market longevity and historical track record for the single-asset GP-led segment that points to returns which are equal or in excess of a direct buyout strategy, single-asset GP-led managers can have highly targeted strategy lens and clear differentiation in origination and asset selection approach, and their execution capabilities are similar to direct buyout peers with investment processes and diligence requiring deep expertise and experience in direct asset underwriting. In essence, two diametrically different approaches, all falling under the same label – “secondaries”.
2. Continuation Vehicles are just a fraction of what is possible
The desire to hold compounding assets for longer – alongside partners with deep knowledge of the company and sector – has also driven the expansion of what a single-asset GP-led solution is, beyond single-asset continuation vehicles. We see the use of co-control structures and transformational M&A equity financing as natural expansions of a continuation vehicle’s core appeal to investors, i.e. the opportunity to access star assets in partnership with, and closely aligned to, the sponsors best suited to own them.
Partnerships such as recently announced co-control investments by Impilo and KKR, Oakley Capital and Eurazeo, and PSG and Rivean Capital illustrate the template of sponsors bringing in a co-control sponsor to continue successful buy-and-build stories. In each instance, the incoming co-control investor brings additional capital and capabilities to support the second phase of ownership, such as for geographic expansion beyond the home market.
Retaining a larger stake, governance rights and attribution is an attractive proposition to the existing sponsor. They may face constraints however, such as a lack of follow-on capital or fund concentration limits. Creative single-asset GP-led structures can help solve these.
3. “CV squared” emerging as additional route to liquidity
Transactions where one continuation vehicle sells an asset to a newly formed continuation vehicle are drawing significant attention. In our view, these are a natural consequence of continuation vehicles’ widespread adoption over the past five plus years. We see these transactions as a validation of the core thesis – great compounders can deliver alpha returns over multiple ownership cycles. We have seen this pattern playing out in the European landscape multiple times over the years in different disguises. Outstanding examples, such as Hg’s journey with Visma, only highlight the attractiveness of supporting star assets as they scale in their journey to multi-regional, multi-product pre-eminence.
“CV squared” transactions require a case-by-case basis diligence of the sponsor’s motivation, alignment and the go-forward value creation plan for the asset, just as a new investment would. For the existing limited partners, a continuation vehicle solution imposes the decision to sell or roll on – but we see considerable benefit in the additional liquidity provided to the market by these so-called “CV squared” structures, which only add to the exit alternatives available to investors.
4. Lead role in mid-market deals becoming ever more key
We saw single-asset GP-leds emerging as an opportunistic allocation within broader secondaries strategies without dedicated teams and capital. Buyers would initially accept syndicates with multiple competitors participating because the availability of capital on the buyside was not adequate to the demand from sponsors holding high-quality companies. Increasingly, however, we see transactions with one or two clear lead buyers who seek to secure an allocation early (even before a process has commenced) – thereby minimising the allocation available for syndication.
For allocators selecting single-asset GP-led strategies, that means that the highest-quality opportunities will only be accessible to a decreasing set of managers. When committing capital to GP-led managers, we believe allocators should therefore carefully examine origination track records and sourcing advantage going forward, as only those with the requisite strategy focus, team bandwidth and repeatable processes will be able to identify and secure these transactions.
References:
[1] Sponsor-backed exit activity source: Jefferies Global Secondary Market Review, January 2025
[2] IPO and secondaries volume source: Pitchbook, Annual PE Breakdown 2024 (published January 2025)
In our 2024 outlook, Hayfin argued that the European market offered one of the most attractive opportunity sets in private credit globally[1]. One year on, the evidence is even more compelling.
In the last six months, in particular, geopolitical risk and heightened trade tensions have accelerated a process that has been years in the making: institutional allocators looking beyond the US market to Europe, drawn by its unique market structure and comparatively untapped landscape. Once seen as a challenge, the continent’s fragmented financial ecosystem is now a source of competitive advantage for managers with local presence and scale.
Policy shocks and portfolio shifts
The reintroduction of extensive US tariffs on imports from trading partners around the world has reignited trade tensions and introduced fresh volatility into the global investment landscape – but particularly in the US and China. Even with these measures often having been quickly reversed or put on pause, they have raised inflationary concerns and complicated global supply chains, prompting allocators to reassess their geographic exposure.
A popular destination for that diversification is Europe, which, by contrast,offers a comparatively more stable political and regulatory backdrop. This divergence is already being reflected in capital flows. According to Preqin, Europe-focused private credit funds raised $25.7 billion in Q1 2025, nearly tripling the $9.3 billion raised by US-focused counterparts[2].
While North America still represents around 75% of private credit assets, this trend was the most common theme discussed at the 2025 SuperReturn Conference in Berlin. At the private capital industry’s top convention, asset managers and allocators cited a deliberate move toward non-US private markets, with Europe emerging as a priority region. This momentum for European private credit has been accelerated by a move from allocators to rebalance away from private equity, given current overweighting and the challenges faced in that asset class.
Crucially, however, investors aren’t simply avoiding short-term geopolitical risk; allocators are increasingly drawn to the structural advantages and return potential Europe offers.As US markets become increasingly saturated, Europe continues to present a differentiated opportunity set that rewards selectivity, local presence and underwriting discipline.
Structural strength and strategic opportunity
At the heart of Europe’s appeal is its structural distinctiveness. The continent is heavily segmented and continues to be a bank relationship-oriented market[3]. As regulatory pressures persist under Basel IV and banks continue to pull back from the mid-market, private credit is stepping into a widening gap.
But what sets Europe apart is the quality of its deal flow, not just its availability. European private credit transactions typically offer a 50–150 basis-point margin premium over comparable US loans, often with tighter documentation and lower leverage than their US counterparts[4]. Recovery rates are higher, and default rates remain lower, supported by tested creditor-friendly legal regimes in jurisdictions such as the UK, Luxembourg and the Netherlands.
Finally, Europe’s complexity, its patchwork of languages, legal systems and market norms also creates a natural barrier to entry. For new entrants, clearly, that’s a challenge. For managers with deep regional networks and on-the-ground infrastructure, this fragmentation becomes a protective moat. It enables proprietary deal flow, differentiated origination, more nuanced risk assessment and greater control over structuring and execution.
While the US market becomes increasingly commoditised, Europe rewards regional expertise and scale. This differentiation is increasingly valuable in a global market where capital is abundant but high-quality opportunities are scarce.
The move to Europe is underway
The case for European private credit is no longer theoretical; it’s playing out in real time. As US markets grapple with policy-driven volatility and competitive saturation, Europe offers a less crowded, structurally attractive alternative.
For investors seeking resilient returns, downside protection and differentiated deal flow, Europe offers some of the most compelling opportunities in the market today.
REFERENCES
[1] Hayfin, ‘Why Europe? Market Considerations for Private Credit’, 23 May 2024
[2] S&P Global, ‘Europe-focused private credit fundraising outpaces US efforts’, 03 April 2025
[3] S&P Global, ‘Credit FAQ: How Private Credit’s European Expansion Brings Rewards And Risks’, 09 May 2023
[4] Hayfin, ‘Why Europe? Market Considerations for Private Credit’, 23 May 2024
Hayfin is pleased to announce that it is acting as lead investor in the €240 million single-asset Continuation vehicle through its Private Equity Solutions strategy, to support Investcorp Technology Partners (ITP) in scaling and deepening HWG Sababa’s strategic market position.
Headquartered in Verona, Italy, HWG Sababa is a fast-growing cybersecurity platform offering end-to-end protection – from strategic advisory and 24/7 Security Operations Centre monitoring to incident response, pentesting – for Information Technology, Operational Technology and Internet of Things environments.
Active in over 20 countries, HWG Sababa secures mission-critical systems of a diverse base of mid-sized enterprise clients across sectors including critical infrastructure, energy, finance, manufacturing, telecommunications, automotive and more. The company has experienced rapid expansion, fuelled by double-digit organic growth and strategic add-on acquisitions.
Vladimir Balchev, Managing Director of the Private Equity Solutions team at Hayfin, said: “Supporting HWG Sababa’s mission to safeguard some of Europe’s most critical industries is a compelling opportunity, and we’re pleased to collaborate with Investcorp. As cyber threats grow in scale and sophistication, HWG Sababa’s platform is uniquely placed to ensure customers remain secure and cement its role as a trusted partner for businesses operating in complex threat environments.”
Veronica Magnanini, Principal of the Private Equity Solutions team at Hayfin, added: “This transaction is testament to the strength of our investment proposition through our Private Equity Solutions strategy. In partnering with a high-calibre sponsor like ITP to continue supporting a category-leading business such as HWG Sababa, we expect that the business can capitalise on its significant potential in this next phase of growth.”
Hayfin is pleased to announce that it has acquired a minority stake through its Private Equity Solutions (PES) strategy in Novétude Group, a new European healthcare education platform in partnership with Charterhouse Capital Partners. The Group will be built around Novétude Santé, which Charterhouse has owned and grown since 2020. Charterhouse will retain a majority stake in the new platform.
Underpinned by significant industry tailwinds, there is strong sentiment that the Novétude Group is well-positioned to benefit from the large and growing market of European students enrolled in health and welfare studies at private education institutions and an ageing population in Europe, which is expected to drive increased demand for healthcare professionals and services.
Gonzalo Erroz, Managing Director and Co-head of the Private Equity Solutions team at Hayfin, said: “Joining forces with Charterhouse is an exciting development as we continue to invest in exceptional opportunities in the European healthcare education sector. We are proud to contribute to Novétude’s mission of fostering excellence, accessibility and responsibility in professional training, ensuring healthcare specialists are supported throughout every stage of their careers.”
Severin de Mortemart, Managing Director of the Private Equity Solutions team at Hayfin, said: “We are delighted to partner with Charterhouse and to leverage our position as an investor to support Novétude Group through their next stage of development, with the aim of helping to build one of the leading healthcare education platforms in Europe.”
As an active investor in European mid-market companies via single-asset GP-led solutions, Hayfin’s PES strategy benefits from strong alignment of interest with sponsors and management teams that already own, operate and know the target businesses intimately.
This paper addresses the following:
- European buyouts generating attractive returns despite a low growth macro environment.
- The deep and underpenetrated European midmarket offering compelling competitive dynamics Mid-market being the sweet spot for GP-led transactions to help businesses bridge the “value stretch” phase and maximise exit value.
- GP-led secondaries continue to gain significant momentum, providing a distinctive way for investors to access star assets alongside incumbent sponsors.
European Mid Market – The Sweet Spot of GP-Led Secondaries
Private equity markets are at a watershed moment. A structural increase in competition, driven by dry powder accumulation, and capital market dislocation, are causing a significant decrease in exit liquidity and creating a scarcity of high-quality investment opportunities.
In our latest report, we uncover the following:
- How the single-asset secondary segment can account for 4%-8% of overall European PE exit activity, or €10bn-€20bn p.a., by 2025.
- Depending on pace of growth in the segment, concentrated GP-led deals could account for almost a fifth of sponsor-to-sponsor exit deal flow by 2025, effectively reallocating some of the top-quartile opportunities institutional investors previously accessed via direct managers to secondary capital pools.
- The drivers of the growth in Europe’s single-asset secondary space, from both a GP and LP perspective, including superior returns, a more attractive opportunity set at a time of heightened competition for assets, greater alignment between partners, better control over portfolio construction and preferable cashflow profile to a traditional primary buyout fund.
Hayfin today announces that, through its Private Equity Solutions strategy, it is acting as lead investor, together with Eurazeo, in the €220 million Continuation Fund raised by 21 Invest France to support the next phase of its ownership of ProductLife Group (“PLG”).
PLG is a global expert in regulatory affairs and compliance consulting for the healthcare industry. Serving more than 1,000 clients ranging from pharmaceutical companies, biotech and medtech companies, the group covers the entire lifecycle of pharmaceutical products, from development to post-marketing vigilance, across more than 150 countries. The company has expanded rapidly, driven by double-digit organic growth and 16 acquisitions in nine countries since 2020.
In addition to its management team, which is reinvesting significantly, PLG will be jointly controlled by Oakley Capital and 21 Invest France, which is reinvesting through its sixth fund vintage and the newly established Continuation Fund led by Hayfin and Eurazeo. Other investors are joining in syndication.
Gonzalo Erroz, Managing Director, Private Equity Solutions at Hayfin, commented: “We are delighted to partner with 21 Invest France to help support the continued growth of PLG at an exciting time for the business, as it seeks to expand its global presence and offering. The Continuation Fund will provide PLG with substantial resources to execute organic growth initiatives and pursue strategic acquisitions.”
Severin de Mortemart, Director, Private Equity Solutions at Hayfin, added: “This transaction further adds to our teams strong track record of identifying and supporting established sponsors in local markets on the continued growth trajectory of marquee assets in Hayfin’s core sectors of focus.”
Within the European private equity secondaries market, single-asset GP-led transactions are anticipated to double, if not triple, in volume in the next three to five years. Hayfin’s Mirja Lehmler-Brown sits down with Private Equity International to discuss the attractive dynamics within the current market, as well as its expected evolution over the coming years.
Read the full commentary below.