Cross Fund Transactions Emerge as Strategic Value-Creation Lever

A decade ago, cross-fund transactions were viewed as somewhat taboo. The conventional wisdom was that if a sponsor was buying and selling assets between two funds, one side must be getting the better end of the deal. Today, that perception has shifted dramatically. Cross-fund transactions have frequently proven to be mutually advantageous, and since reframed as a win/win opportunity that can serve all stakeholders. As a result, cross-fund investments have also become far more common.

Today, just to put the growth into context, roughly two out of every five single-asset continuation fund transactions from the first half of 2025 involved a cross-fund investment (per Morgan Stanley). This trend aligns with ASC’s experience, having closed three cross-fund transactions over the past two years. ASC’s forward pipeline similarly reflects this momentum.

The growing propensity of cross-fund transactions, we believe, underscores two distinct factors that increasingly shape and encourage these investments. First, the acceleration in cross-fund transactions has been enabled by both the maturation and sophistication of the CV marketplace as well as the evolution of flexible strategic capital solutions, like those provided by Audax Strategic Capital (“ASC”). And as capital solutions obviate previous concerns, sponsors have increasingly gravitated to cross-fund deals as a way to manage portfolios, preserve alignment, and support continued portfolio company growth with additional time and capital.

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