GP-led deals have long been a feature of private equity, and now they’re reshaping private credit. As direct lending funds reach the end of their legal terms with seasoned loans still outstanding, continuation vehicles, and other GP liquidity solutions are emerging as a structural part of the market. These income-oriented transactions require a sophisticated level of underwriting discipline to evaluate.
In recent years, private credit fund managers (“general partners” or “GPs”) have become increasingly active participants in the secondaries markets. GP-led deals have become a more prevalent way to provide liquidity solutions to existing investors while allowing managers to continue managing portfolios of assets.
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