Eldridge Capital Management is aiming to raise $1bn for a new GP-solutions fund as private equity firms increasingly seek alternative financing to manage liquidity pressures, according to sources cited by Bloomberg.

The New York-based investment firm, part of the $70bn asset manager Eldridge, will use the vehicle to back strategies such as continuation funds, which enable managers to hold on to assets for longer while still providing liquidity to investors.

The initiative follows Eldridge’s hire of David Lee as head of GP solutions in 2023 and comes at a time when buyout managers are struggling to return capital to investors amid a slowdown in dealmaking.

The fundraising drive coincides with a boom in the secondaries market. A record $102bn worth of secondary transactions were recorded in the first half of 2025, according to Evercore, marking 41% year-on-year growth. Meanwhile, $120bn in new secondaries funds are currently coming to market, data from With Intelligence shows.

Eldridge declined to comment on the planned fundraise.

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