Continuation vehicles have become the dominant structure in GP-led secondaries, representing 87% of the $47 billion in GP-led transaction volume recorded in the first half of 2025. Blue Owl Capital has positioned itself squarely in this market with the close of its first dedicated fund, Blue Owl Strategic Equity (BOSE), which attracted more than $3 billion in commitments.
The concept behind a continuation vehicle is simple in theory and demanding in execution. A private equity sponsor identifies a portfolio company worth holding beyond the original fund’s lifecycle, creates a new vehicle to house it, and brings in fresh capital to provide liquidity to existing investors who want to exit while allowing those who want to stay to roll their positions. The buyer (in this case, BOSE) provides minority equity capital and commits to a longer holding period.
Blue Owl Capital structured BOSE around two primary transaction types: single-asset continuation funds, where a single company moves into a new vehicle, and direct minority equity investments. Both serve sponsors who believe their companies have room to compound but can’t hold them within (bloomberg.com/profile/company/OWL:US) existing fund structures that are approaching or past their expected life. The distinction from traditional secondaries buyers is time horizon: BOSE is built to hold positions for extended periods alongside the original sponsor.
The $3 billion close is large for a debut fund in this category. Blue Owl attributed the fundraising success to demand from both institutional channels and private wealth platforms. The firm’s Credit platform, which manages $157.8 billion, provided a distribution advantage that newer entrants to the secondaries space typically don’t enjoy.
Chris Crampton leads the strategy as Senior Managing Director and Head of Strategic Equity. He described the pipeline as active, with managers across private equity expressing interest in long-duration capital partners. Co-CEOs Doug Ostrover and Marc Lipschultz reinforced the message by emphasizing that sponsors are increasingly looking for aligned capital, investors who share a long-term view rather than pushing for a quick return.
The broader context supports the timing. Jefferies reported that GP-led transaction volume grew 68% year-over-year in H1 2025. (finance.yahoo.com/quote/OWL/) The acceleration reflects both the maturation of continuation vehicles as a mainstream tool and the growing comfort among limited partners with the structures involved. Blue Owl Capital ended 2025 as one of the largest alternative asset managers globally, making BOSE one component of a diversified platform that spans direct lending, real estate, technology infrastructure, and now strategic equity secondaries.
