Finance Update: Highlighting the Latest Fundraising Milestones in the Private Equity Sector
In a notable shift, there has been an increase in institutional demand for liquidity in the private equity sector. This trend is particularly reflected in the growing interest in secondary and co-investment funds as alternative liquidity strategies in challenging market conditions.
Corsair Capital, a leading private equity firm, recently closed a $600m continuation vehicle and secondary fund, Corsair Riva, L.P. The fund was capitalized by a group of new and existing Limited Partners (LPs) and is structured to offer existing investors optional liquidity. The deal for Corsair Riva was led by secondaries specialist Coller Capital. The fund enables Corsair to retain ownership of three strategically positioned portfolio companies.
Morgan Stanley Investment Management has also entered the fray with the introduction of the North Haven Private Assets Fund, its first evergreen private equity fund. This fund focuses on co-investments and secondaries in the lower middle market. The strategy offers enhanced liquidity in contrast to the more traditional closed-end model, designed to provide high-net-worth investors with institutional-quality access to private equity strategies.
The European Bank for Reconstruction and Development (EBRD) is considering a €25m ($28m) equity investment in Provectus SEE Fund II, a €200m private equity vehicle managed by Croatian firm Provectus Capital Partners (PCP). Provectus SEE Fund II focuses on providing equity and equity-related capital to small and medium-sized enterprises across Southeast Europe.
Meanwhile, Mérieux Equity Partners has reached the first close of its €150m Mérieux Innovation 2 (MI2) fund. MI2 aims to back around 15 EU-based ventures, focusing on early-stage healthcare companies across diagnostics, therapeutics, medtech, and pharma services. Initial investments for MI2 will typically be around €6m, with follow-on investments potentially rising to €15m. Mérieux Innovation 2 has already secured nearly 50% of its target.
Apollo Global Management has also raised $5.4bn for its first secondaries fund, S3 Equity and Hybrid Solutions. These developments underscore the growing trend of institutional investors seeking more liquid forms of private equity exposure.
This shift towards secondaries and co-investments is part of a broader trend where institutional investors are looking for more liquid forms of private equity exposure. Secondaries funds allow LPs to sell stakes in existing funds before the traditional end-of-life exit, providing needed liquidity. Co-investments offer direct stakes in portfolio companies alongside general partners, often with lower fees and potentially quicker liquidity compared to primary fund commitments.
The tightening and recalibration of liquidity in financial markets also influence this trend. Both banks and Non-Bank Financial Institutions (NBFIs) must manage liquidity risks carefully. Liquidity provision depends on resilient funding markets and prudent liquidity risk management, with monetary and regulatory frameworks aimed at balancing the availability of cheap liquidity without creating unsustainable leverage.
Institutional demand for alternative and liquid investment vehicles is also visible in surging inflows into liquid ETFs, such as Ethereum ETFs ($1 billion daily inflows recently) and institutional Bitcoin demand exceeding miner supply by six times, reflecting a broader institutional appetite for more liquid, accessible exposures across asset classes.
In summary, the increase in institutional demand for liquidity in private equity manifests as greater interest and capital flows into secondary and co-investment funds, which provide liquidity solutions amid a difficult fundraising and exit environment. This trend is influenced by broader liquidity management challenges across markets.
[1] "Institutional Demand for Liquid Private Equity Solutions on the Rise" - Private Equity International, 2025 [2] "Liquidity Management Challenges in Financial Markets" - Bank for International Settlements, 2025 [3] "Institutional Inflows into Liquid ETFs" - Bloomberg, 2025 [4] "Institutional Bitcoin Demand Exceeds Miner Supply" - CoinDesk, 2025
- The private equity sector is experiencing an increase in institutional demand for liquidity, as reflected in the growing interest in secondary and co-investment funds.
- Corsair Capital, a leading private equity firm, recently closed a $600m continuation vehicle and secondary fund, Corsair Riva, L.P., which offers existing investors optional liquidity.
- Morgan Stanley Investment Management has introduced the North Haven Private Assets Fund, an evergreen private equity fund focusing on co-investments and secondaries in the lower middle market, to provide high-net-worth investors with institutional-quality access to private equity strategies.
- The European Bank for Reconstruction and Development (EBRD) is considering a €25m equity investment in Provectus SEE Fund II, a private equity vehicle managed by Provectus Capital Partners (PCP), to provide equity and equity-related capital to small and medium-sized enterprises across Southeast Europe.
- Mérieux Equity Partners has reached the first close of its €150m Mérieux Innovation 2 (MI2) fund, aiming to back around 15 EU-based ventures, with initial investments typically around €6m and potential follow-on investments rising to €15m.
- Apollo Global Management has raised $5.4bn for its first secondaries fund, S3 Equity and Hybrid Solutions, further underlining the growing trend of institutional investors seeking more liquid forms of private equity exposure.
- Institutional demand for alternative and liquid investment vehicles is also visible in surging inflows into liquid ETFs, such as Ethereum ETFs ($1 billion daily inflows recently), and institutional Bitcoin demand exceeding miner supply by six times, indicating a broader institutional appetite for more liquid, accessible exposures across asset classes.
