Navigating Single Asset Continuation Funds: Part 2

In the first part of our discussion of single asset continuation funds (SACFs), we discussed portfolio company characteristics and deal dynamics which now seem to characterise this market. In this part 2, we focus on some of the technical and commercial developments in this space, as the SACF becomes a fourth exit for private capital managers of all shapes and sizes.

A key theme is that as the SACF model has become mainstream, the types of transaction being done are becoming more akin to typical M&A processes. This requires a shift in mindset for all stakeholders: it cannot be assumed that a SACF transaction will run akin to a super-charged fundraise transaction and secondary buyers are not typical "passive" institutional LPs.