Continuation fund

A new vehicle managed by the same general partner that acquires one or more investments from an older fund. Existing investors may elect to sell or roll their interests, subject to the transaction terms.

Also called CV, continuation vehicle

Continuation fund in round numbers

Hypothetical: a general partner (GP) arranges US$300m of capitalization for a continuation vehicle. That amount is not automatically the purchase consideration: fees, other uses and rollover interests affect the funding structure. Existing investors assess the available cash-out or rollover terms.

Secondaries · J-curve · LPA · GP catch-up · All of the glossary