Fee convergence on continuation vehicles
29.04.2025 – Articles
According to new stats, management fees on CVs are beginning to converge, while sponsor commitments are reducing.
Morgan Lewis’ Annual Continuation Vehicles Report 2025, which analysed 44 continuation vehicles, has found that management fees on these funds are converging to 1%. Meanwhile, average sponsor commitments are coming down from well over 5% to less than 5%.
The dataset
44 CVs
Ranging from $110m to $3.25bn
83% North America; 17% Europe
54% single asset; 46% multi asset
Almost half of the CVs were buyout, the remainder came from VC, credit, infra, RE, other.
Management fee convergence
Less than 0.