Continuation Fund

“The transactions that are less favorable to the market is where there's been a failed sell side on that company. And then, oh, that sell side failed. Why don't we do a continuation fund? Now, the market figures that out pretty quickly.”

“Sponsor to continuation fund channel, which was around 10% of exits last year.”

“These are the best GPs with their best assets, leveraging the secondary market for a number of reasons. Often it's a single company continuation. This is often their crown jewel, trophy asset, where in the past, a managing partner may have to sell their best a…”

“It's a lot easier for an asset owner to decide to sell a portfolio of LP interests at 80 because they have a particular objective in mind than it is for a general partner to convince their existing investors to take the option of selling at 80 cents on the dol…”

“We've already seen situations where the LPs who are not electing to continue are getting stuffed with fees. We're seeing deal fees that the manager's taking, and because there's not enough management fee, they're not being offset against it.”

“Why I think continuation deals are really interesting is that by and large, today, you are seeing the better companies go out in those deals. I think where you worry is when it starts to be, oh shoot, this is so easy, I'm just going to throw out any deal. I do…”

“So for the beginning of the industry until the last 10 years, if you really wanted to invest in private equity, your choices were generally a ten-year limited partnership. You would make an investment up front, and then the manager would invest and create liqu…”