Hg Launches New €1 Billion Secondary Fund for GP Deals
Private equity firms will have more options for liquidity as Hg targets software assets managed by other sponsors.
Updated on Oct. 15, 2026 in Business Strategy
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Private equity firm Hg has raised €1 billion for its debut GP-led secondaries fund, Orion 1, reaching over half of its €1.75 billion target. The fund seeks to provide liquidity and portfolio management by targeting software and technology-enabled businesses currently held by other sponsors.
Why it matters
The rapid growth of the secondary market, driven by sponsor and investor demand for liquidity, is creating new exit pathways for private businesses. This move signals that specialist firms are increasingly positioning themselves to manage continuation vehicles for older, high-performing assets.
Hg secured €1 billion in six months for Orion 1, against a total target of €1.75 billion. This follows a 2025 global market where secondary transaction volumes reached $240 billion, with GP-led deals accounting for $115 billion.
The players
Hg
A private equity firm focused on software and technology-enabled services.
Dushy Sivanithy
The leader of the dedicated GP-led secondaries team at Hg.
The details
Hg utilizes its sector-specific expertise in software and technology-enabled services to identify and manage secondary opportunities. By creating a dedicated team to lead these transactions, the firm aims to facilitate exits through continuation vehicles, which represented 14% of sponsor-backed exits globally in 2025. This strategy allows for ongoing management of assets while providing original investors with an exit option.
Timeline
January 2026: Hg established a dedicated GP-led secondaries team.
2025: Global secondaries transaction volumes reached $240 billion.
October 2026: Orion 1 reached its first close.
Market Landscape
The launch of Orion 1 follows the documented trend of GP-led continuation vehicles becoming a core component of the private equity exit landscape. This market shift saw these vehicles account for 14% of all sponsor-backed exits in 2025 as firms seek alternatives to traditional trade sales.
Business owners should monitor the growing role of secondary markets as these provide additional exit liquidity options outside of standard M&A. Firms should consider how current ownership structures might interface with sponsor-led secondary strategies in the coming fiscal cycle.
The takeaway
The maturation of GP-led secondary funds suggests that continuation vehicles are becoming a permanent feature of private equity portfolio management. Operators should assess whether their current investors have access to these vehicles, as this can extend holding periods and shift management priorities.
Further reading
For more on evolving capital structures, visit Business Strategy.
Source note: This article includes information reported by Private Equity Wire.
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