About Exponent

• Founded: 2005

• Headquarters: Paris, France

• AUM: €4bn (as of 2023)

• Strategy: Mid-market buyout, European technology and business services

• Track record: Deployed capital across five fund vintages; prior continuation vehicle in 2021 at €400m

• Leadership: Founding partners include Stéphane Heuzé and Arnaud Chabas

Apollo, Pantheon and SQ Capital have co-led a €750m continuation vehicle for Exponent Private Equity, marking one of the larger European mid-market CVs this year. The transaction restructured assets from an earlier Exponent fund, giving existing LPs the option to roll into the new vehicle or exit at the transaction price. Apollo's involvement is notable — the firm has increasingly deployed capital as a lead investor in GP-led secondaries, moving beyond its traditional buyer role.

The €750m size nearly doubles Exponent's 2021 CV and reflects sustained demand for continuation vehicles in European mid-market strategies, where exit timelines have stretched. Apollo's co-lead position alongside Pantheon and SQ Capital suggests pricing held despite broader secondary market discounts — CVs with multiple institutional anchors typically clear at tighter spreads than single-buyer structures. The deal also marks a shift in buyer composition: Apollo and Pantheon bring different liquidity profiles than the regional secondaries funds that dominated European mid-market CVs two years ago.

What matters here is asset hold period. Exponent's 2021 CV is barely three years old, meaning at least some underlying companies have now been held across two continuation structures. That raises the question of whether portfolio companies entering a second CV face steeper discounts or skepticism from new LPs unfamiliar with the strategy. The counterpoint: if Apollo sized this at €750m, it found value at the entry price. Whether that reflects portfolio strength or a bet on multiple expansion in European tech services over the next 24 months remains open.

Source: Secondaries Investor