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Super carry becomes more common in continuation funds in 2026
Around 35% of continuation funds closing in H1 2026 included premium economics, up sharply from 15% in Evercore’s full-year 2025 survey.
A growing share of private equity continuation funds are embedding so-called “super carry” terms in their fund documents, according to Evercore. In the first half of 2026, about 35% of continuation fund closings had premium economics, compared with 15% in Evercore’s full-year 2025 survey.
Evercore defines super carry as deal terms that let a fund manager claim more than 20% of the profit generated by the transaction. In a 2025 study by law firm Morgan Lewis, the highest carry level observed for continuation funds was 30%, and Morgan Lewis also found that three-quarters of continuation funds used tiered carry structures, with higher returns producing larger profit shares.
The use of super carry, Evercore said, can make a bid more attractive in competitive auctions by shifting more of the manager’s profit upside toward performance. The goal is also tighter alignment between the sponsor and investors, because strong deal performance benefits both sides while the manager’s share depends more on outcomes.
The article also notes that a negative signal may emerge if an asset is moved into a continuation fund with less favorable economics than the original vehicle, and that sponsors still must set a fair price for the asset and ensure the structure supports the transaction’s go-forward outlook. Bain Capital is cited as offering two classes of LP interests, with its B shares potentially generating a 30% profit share tied to a lower management fee, reflecting how it structures funds beyond continuation deals.