Why CCMP Is Turning to Secondary Markets and Continuation Vehicles in a Slow Exit Cycle

CCMP’s consideration of secondaries to shore up two existing holdings suggests those assets are likely facing longer-timelines or need additional capital to reach desired exit value. In a market shaped by fewer IPOs and subdued M&A, stretching the life of certain companies via GP-led continuation vehicles or secondary recapitalizations is no longer unusual. The firm’s prior success in closing a $500 million target fund (CCMP IV) above goal [6] shows strong support from LPs, but may also lend urgency to optimize existing vintage funds whose performance lags or whose exit windows are narrowing.

The trend toward longer holding periods—now often exceeding seven years for buyouts [4][8]—combined with elevated dry powder in secondary funds creates both opportunity and tension. On one hand, secondary markets offer PE firms a route to reset timelines and secure fresh capital without offloading control; on the other, LPs are increasingly sensitive to valuation transparency, carry resets, and alignment—frequent flashpoints in continuation vehicles.

Strategically, for CCMP, executing a successful secondary could achieve several objectives: preserve upside in those two companies, avoid fire sales, and manage LP expectations during illiquid periods. But risks include convincing LPs of fairness in the process, setting valuations acceptable to both existing and new investors, and maintaining governance where conflicts often arise. Moreover, the market climate matters—GP-led secondaries now command strong pricing only in higher quality companies, especially single-asset continuation vehicles, whereas riskier, diffuse portfolios fetch steeper discounts [10][9].

Emerging open questions: Which two companies are under consideration and what is their remaining runway? What type of structure (e.g., single-asset or multi-asset continuation vehicle) might CCMP use? How will CCMP manage control and economic alignment with LPs and new investors? And how will this action affect its fundraising reputation and terms for future funds?