Abstract descriptions of continuation vehicles are easy enough to find. Concrete examples are harder to come by, because most CV transactions are private and disclosed only through limited partner notices, not press releases. But Blue Owl Capital’s track record offers at least one public data point that illustrates how deals of this type get done.
Before BOSE formally closed at roughly $3 billion in February 2026, Blue Owl had already led a continuation vehicle transaction in August 2024. The deal involved Tacala, a large Taco Bell franchise operator backed by Altamont Capital Partners. LPs invested in Altamont’s fund were given a choice: take cash, or roll their interest into a new vehicle that would continue to hold the Tacala position.
How a typical BOSE-style deal gets structured
The mechanics follow a consistent pattern across the industry. A sponsor identifies an asset — or a small group of assets — that it wants to hold beyond the original fund’s term. An adviser is hired to manage the process and solicit bids from secondaries buyers. Existing LPs receive a fairness opinion and a formal election: cash out at the assessed value, or continue their exposure in a newly created vehicle.
On average, only about 17% of incumbent LPs choose to roll over. That means 83% take cash, and the secondaries buyer — a fund like BOSE — provides the capital to make them whole. BOSE’s stated focus is on “strongest-performing portfolio companies through continuation vehicles and other minority equity transactions.”
Markus Bolsinger, co-head of Dechert’s private equity practice, outlined what makes these deals credible: “In a GP-led deal, especially if it is a single-asset transaction, it is a must that you run some kind of sales process. There has to be some kind of market test of value.”
What sponsors and LPs get out of the arrangement
For sponsors, CVs solve the fund-life problem without forcing a sale into an uncertain M&A market. Vista Equity Partners used the structure to close a record $5.6 billion transaction for Cloud Software Group in 2025. New Mountain Capital pursued a $3 billion multi-asset deal for Real Chemist over the same period.
For existing LPs, the value proposition is straightforward: liquidity on demand. For buyers like Blue Owl Capital, the appeal lies in getting access to a company with a known operating history and a sponsor who has enough conviction to keep holding it. A Dechert survey found that 71% of GPs who completed a GP-led secondary in the prior 12 months constructed deals involving two to five portfolio companies, while 63% said future deals would likely follow the same concentrated format. Concentrated bets, rather than broad baskets, appear to be where the market is heading.
