Toomey: GP-Led Continuation Funds Face Greater Resistance at Discounts Than LP Sales
John Toomey · Mario Giannini & John Toomey – Private Equity Panel (Capital Allocators EP.309) · Apr 17, 2023 · at 24:03
HarbourVest CEO John Toomey discusses why single-asset continuation funds struggle during market downturns relative to traditional LP secondary sales.
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“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 dollar for that single company or that small portfolio of companies when the manager themselves are on sitting on both sides of the transaction because they're rolling their economics or they're going to benefit from continuing to hold on.”
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