EQT is preparing a continuation fund to transfer a selection of assets from its first venture capital vehicle into a new fund, as secondary transactions gain traction in venture markets, according to sources cited by Bloomberg.

EQT plans to move five to 10 investments from EQT Ventures I, which launched in 2016 and raised €505m, the sources have said. The firm expects the continuation fund to raise at least $500m, with Jefferies advising on the process.

Assets expected to be rolled into the new vehicle include Handshake, a US-based human resources software company first backed by EQT in 2018. The final fund size will depend on negotiations with buyers and how many existing investors opt to roll their stakes.

Venture secondaries remain a relatively small part of the broader secondaries market, accounting for about $8bn of last year’s $226bn in transactions, according to Evercore. However, interest is growing as startups delay IPOs and investors seek liquidity.

The move highlights how private equity firms are increasingly applying continuation fund structures beyond buyouts, extending them into venture capital as exit timelines lengthen across private markets.

If you think we missed any important news, please do not hesitate to contact us at [email protected].

Can`t stop reading? Read more.