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  • videocam On-Demand
  • signal_cellular_alt Intermediate
  • card_travel Banking and Finance
  • schedule 90 minutes

Continuation Funds in Private Equity: Benefits, Risks, Structuring Considerations, Market Developments

Improving Liquidity, Maximizing Potential of High-Performing Assets, Managing Conflicts, Navigating Regulatory Scrutiny

$347.00

This course is $0 with these passes:

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Description

Continuation funds continue to serve as a viable liquidity tool in private equity and their popularity has surged in recent years. A continuation fund is established by a fund sponsor for the purpose of acquiring one or more portfolio companies held by the existing fund. This allows the existing fund to extend the fund's ownership of a highly valued asset beyond the original fund's term to see it reach its full potential. 

Continuation funds can be a solution in a difficult exit market. Some of the key benefits of a continuation fund include enhanced liquidity for limited partners (LPs), greater flexibility for LPs to cash out or remain invested in the underlying portfolio, and continued asset management. 

Despite their usefulness as a liquidity strategy, continuation funds have inherent conflict of interest issues and other considerations that must be properly addressed by counsel when structuring these transactions. Also, regulatory scrutiny of these transactions remains high, making it challenging to navigate the evolving compliance landscape.

Listen as our authoritative panel reviews the mechanics of continuation funds and the current market trends and developments in secondary transactions. The panel will also provide guidance for structuring these highly bespoke transactions to ensure compliance with the evolving regulatory framework.

Presented By

Ruth Jin
Member
Mintz Levin Cohn Ferris Glovsky & Popeo PC
James Manzione
Partner
DLA Piper
Adam S. Tope
Partner
DLA Piper

Mr. Tope advises secondaries firms, investment fund sponsors, and investors on fund formation and secondaries transactions. Having completed more than 250 secondaries transactions in his career, he has significant experience with pooled sale/purchase transactions and GP-led restructurings. Mr. Tope’s secondaries clients include lead investors in connection with GP-led and other complex secondary transactions and buyers and sellers in connection with the purchase and sale of fund interests. His sponsor-side clients include prominent and emerging private equity, infrastructure, energy transition, real estate, venture capital and hedge fund sponsors. Mr. Tope advises in multiple areas, including the drafting of offering memoranda, negotiations with investors and Investment Advisers Act and Investment Company Act compliance. He brings a global perspective to his practice, having represented managers and investors in dozens of jurisdictions. Mr. Tope has worked with spin outs from Apollo, Carlyle, Riverstone, Summit Partners, and others. He has a deep understanding of how principal compensation is structured and can guide principals in negotiating vesting arrangements, key person/for cause removal rights, and rights to carried interest/promote. He is experienced representing managers in connection with negotiations with anchor and lead investors and GP-stakes transactions. Mr. Tope’s investor-side clients include allocators, family offices, funds of funds, endowments, sovereign wealth funds and royal families. He represents these investors in dozens of transactions in nearly every jurisdiction on an annual basis.

Credit Information
  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.


  • Live Online


    On Demand

Date + Time

  • event

    Friday, September 26, 2025

  • schedule

    1:00 p.m. ET./10:00 a.m. PT

I. Overview: the rise and evolution of continuation funds in today's private equity market

II. Benefits and risks associated with continuation funds

III. Structuring considerations

IV. Regulatory concerns and uncertainty

V. Negotiating and forming continuation funds

VI. Practitioner pointers and key takeaways

The panel will address these and other key considerations:

  • How have continuation funds evolved and gained momentum in recent years?
  • What are common continuation fund structures and strategies?
  • How can conflicts of interest be managed in a continuation fund transaction?
  • What are the key regulatory considerations relating to continuation funds, and what are best practices for managing these issues?