In the UK, rapid business growth has often been treated as shorthand for success: bigger revenues, more staff, another funding round, another expansion plan.

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These can all signal momentum, but speed alone does not make a business successful.

The same test now applies to the funds backing those companies.

For years, rising paper valuations were often enough. Now investors and buyers want evidence that growth will translate into real value, and those funds, in turn, face the same pressure from their own investors. Limited partners (LPs) want cash returned, not simply higher marks, and that is harder to deliver as exits slow and buyers become more selective.

The industry has responded with continuation funds and evergreen vehicles, allowing investors to hold businesses for longer. Used well, they can avoid poorly........

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