Talking. Secondaries. Part 3: Continuation Fund

A vehicle capitalised by a secondary buyer and managed by the existing GP acquires one or more assets from the existing fund.

Summary

Why use a Continuation Vehicle?

• Maintain exposure to high-performing assets or maximise returns on underperforming assets.
• Extend the hold period for assets while raising significant further follow-on capital to enhance returns.

What is the process?

• Principal secondary buyer becomes lead investor in continuation vehicle.
• Existing LP base offered the option to sell or to 'roll' into the continuation fund.
• New carry arrangements may be established to align interests of secondary buyer, GP and electing LP.

Key considerations