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ARTICLE · 01 SEPTEMBER 2026

Late-stage Liquidity And The Bermuda Fund Toolkit

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Bermuda's private equity funds face mounting pressure as net asset values concentrate in fewer, larger portfolios while traditional exit routes remain constrained. With merger and acquisition markets uncertain and distribution droughts complicating fundraising, sponsors must navigate continuation vehicles and NAV financing as alternative liquidity solutions, each carrying distinct structural complexities and contractual implications under Bermuda's flexible partnership framework.

BermudaFinance and Banking
Charles Hambling
Charles Hambling
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Private-market liquidity once followed an exit. Today, however, it must often be engineered.

That matters in Bermuda, where asset management is not only a substantial sector in its own right, but also complemented by Bermuda’s re/insurance and insurance-linked securities market.

Intriguingly, Bermuda Monetary Authority statistics show that the net asset value of Professional Closed Funds registered under the Investment Funds Act 2006 rose from $67 billion in Q1 2025 to $78.4 billion in Q1 2026, while vehicle numbers fell from 117 to 112. Those figures suggest capital concentration in larger, maturing closed-ended portfolios.

The wider backdrop is familiar: uncertain merger and acquisition and initial public offering markets, stubborn valuation gaps, longer holds, and a distribution drought complicating limited partner allocations and sponsors’ next fundraises.

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