Private equity turns to continuation funds, secondary buyouts as alternative to traditional exits

Stephanie Kam, counsel in Morrison Foerster’s Singapore office, was quoted in The Business Times noting that private equity sponsors in Southeast Asia are increasingly turning to continuation funds, secondary buyouts, and bespoke structures as alternatives to traditional exits, as initial public offerings and strategic exits remain constrained. Stephanie observed that while there is cautious optimism for a rebound in IPO markets, supported by initiatives such as the Singapore Exchange–Nasdaq dual-listing framework announced in December 2025, private equity players are likely to continue hedging their exit strategies with secondary and trade exits to manage timing and meet evolving investor requirements.

This region-focused trend aligns with findings in Morrison Foerster’s Global PE Trends 2025 and Outlook for 2026, which highlights continuation vehicles and liquidity engineering as key themes shaping private equity markets worldwide. The report underscores how creative structuring solutions, such as continuation funds and secondary transactions, are becoming mainstream tools for managing duration and unlocking value amid changing exit dynamics.

The article also points to continued momentum in healthcare and technology deal activity across Southeast Asia, driven by demographic trends and innovation in biotech and digital health, as well as ongoing digital adoption and AI-related infrastructure. At the same time, Stephanie emphasized growing regulatory complexity, such as heightened scrutiny of data center infrastructure, and the need for sponsors to navigate geopolitical and localization challenges as global supply chains realign.

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