Private Equity Liquidity Crunch Creates $600M Opportunity For Twin Bridge

Twin Bridge Capital Partners is targeting up to $600 million for a new private equity vehicle focused on secondaries.

The Chicago-based fund-of-funds manager is raising the Twin Bridge Amplify Fund. This would be the first vehicle dedicated specifically to the secondaries market, according to PitchBook. 

The fund reached an interim milestone in December with $300 million from an anchor investor and is targeting a final close in the first half of 2027.

Betting on Continuation Funds

The fund will focus primarily on single-asset continuation vehicles, often investing alongside sponsors with which Twin Bridge already has relationships, according to the firm’s website. The fund can also allocate up to 25% of its capital to co-investments and up to 20% to opportunistic investments tied to market dislocations, PitchBook reported.

The fund will target equity commitments of $20 million to $40 million, with enterprise values of $1 billion or less.

Twin Bridge is raising capital for other strategies. A July SEC filing shows the firm is seeking commitments for Twin Bridge Narrow Gate Fund III, its third vehicle focused on backing small buyout funds.

The firm also closed its sixth flagship fund-of-funds vehicle in May with more than $855 million in commitments. Public filings cited by PitchBook showed Twin Bridge had $5.2 billion in assets under management as of Jan. 1.

Secondaries Hit Record Levels

Twin Bridge’s fundraising comes as the secondaries market has reached record levels. 

Evercore estimated $121 billion of secondary transaction volume in the first half of the year, with more than half coming from GP-led transactions. Single-asset continuation vehicles accounted for roughly $34 billion, or 53%, of GP-led activity.

Earlier this month, S&P Global Market Intelligence noted that growth in private equity secondaries is expected to "outlast the investor liquidity squeeze."

Secondaries observers anticipate the total 2026 deal value could exceed $250 billion, more than double the full-year total recorded as recently as 2023, Blackstone President Jonathan Gray said at a conference presentation in June.

Gray said the so-called Saaspocalypse clouding the outlook for private equity’s software investments would boost secondaries deal activity.

“There are LPs out there who would like to see more liquidity, particularly some of these areas where it’s harder to get liquidity like software,” Gray said.

More Firms Chase GP-Led Deals

The growth has prompted several major private equity firms and secondaries specialists to launch strategies targeting the segment. 

ICG, Carlyle AlpInvest and Lexington Partners are among some of the larger players that have introduced products focused on single-asset continuation deals, although those firms generally pursue larger transactions, PitchBook noted.

Smaller platforms, including NorthSands Capital and Orchard Investment Partners, have also emerged in the space.

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