Continuation Funds: Five Questions To Get Right Before You Launch

Continuation funds now sit at the center of the private capital industry. They account for a growing share of secondary market volume and are now a well-established and legitimate exit route for high-quality assets. However, despite this growth, some processes stall or never formally launch. Successful launches are often distinguished by careful and considered early preparatory work, and this note sets out five questions every GP should be able to answer before moving from idea to market.

1. Is the asset and the business plan a good fit for a CV transaction?

As the CV market has matured, lead secondaries buyers and LPs have become far more sophisticated and selective, and the level of commercial and legal due diligence conducted by buyers is increasingly comprehensive. Buyers are backing continuation funds primarily where the underlying asset(s) combines a convincing historic growth story with a clear thesis for future value-creation. Deals that have priced well and have been