Continuation Funds: Top 5 Considerations

For those who were unable to attend the recent Boston Private Equity Network (BPEN) panel and webinar on Continuation Funds – Moderated by Kari Harris, Investment Funds Chair at Mintz, and featuring Aly Champsi of DW Healthcare Partners, Dave El Helou of Evercore, and Chad Rucker of Valuation Research Corporation – below is a summary of key points from the conversation:

1. What is a Continuation Fund? A Continuation Fund or "CV" is used when a Private Equity sponsor recapitalizes an investment in a portfolio company and moves it to a new fund vehicle to continue holding and managing the portfolio company until the CV's ultimate exit.
2. Why refinance a portfolio company through a CV rather than holding or selling it? In recent years, CVs have been used to refinance and provide additional capitalization to strong-performing portfolio companies for a number of reasons including the desire to provide liquidity to existing investors and lack of access to additional