CVs recognized as viable option for exiting investments alongside M&A and IPO: Moelis’s Hammer

In the ever-evolving landscape of private equity, the use of co-investment vehicles (CVs) as an exit route in addition to initial public offerings (IPOs) and mergers and acquisitions (M&A) is becoming increasingly prominent. Moelis & Co’s managing director, Jeff Hammer, highlighted this trend during the NEXUS 2026 event, noting that secondaries buyers’ specialized expertise is playing a crucial role in generating interest from general partners (GPs) to consider using CVs in conjunction with other exit strategies.

GPs are recognizing the benefits of incorporating CVs into their exit plans, driven by the unique advantages offered by these vehicles. The flexibility and customization opportunities provided by CVs make them an attractive option for GPs seeking alternative exit routes that align with their strategic objectives. By leveraging the expertise and resources of secondaries buyers, GPs can efficiently structure and execute CV transactions, maximizing returns for all stakeholders involved.

The growing acceptance of CVs as a mainstream exit strategy underscores the maturation of the private equity market and highlights the importance of diversifying exit options to navigate changing market conditions effectively. In an environment where traditional exit avenues may not always be viable or optimal, having access to alternative strategies such as CVs can provide GPs with greater flexibility and agility to adapt to evolving circumstances.

Moreover, the rise of CVs as a viable exit route reflects a broader trend towards specialization and innovation within the private equity industry. GPs are increasingly open to exploring new and unconventional approaches to maximize value for their investors, recognizing the value that CVs can bring in unlocking unique opportunities and creating additional value throughout the investment lifecycle.

As GPs continue to navigate the complexities of an increasingly competitive and dynamic market landscape, the strategic use of CVs alongside traditional exit strategies positions them to optimize returns and achieve successful exits in a rapidly changing environment. By embracing innovation and diversification in their approach to exits, GPs can stay ahead of the curve and capitalize on emerging trends to drive value creation and long-term success for their investment portfolios.

In summary, the integration of CVs into the private equity exit toolkit represents a strategic evolution in how GPs approach exit planning and execution. By leveraging the specialized expertise of secondaries buyers and incorporating alternative exit strategies such as CVs, GPs can enhance their ability to generate value, manage risk, and adapt to evolving market conditions effectively. As the private equity landscape continues to evolve, GPs who embrace innovation and creativity in their exit strategies are poised to thrive in an increasingly competitive and dynamic market environment.