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Continuation Funds in Private Equity: Benefits, Risks, Structuring Considerations, Market Developments
Improving Liquidity, Maximizing Potential of High-Performing Assets, Managing Conflicts, Navigating Regulatory Scrutiny
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About the Course
Introduction
This program will discuss the market developments that have led to the rise in continuation funds in private equity. The panel will address the benefits and challenges associated with continuation funds and provide guidance for navigating the inherent conflicts of interest and structuring challenges with these complex transactions.
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
Ms. Jin has 20 years of experience delivering high-quality and business-focused legal solutions to private fund sponsors and asset managers of all sizes and strategies. She has formed, structured, re-structured, and advised numerous private funds. Her work encompasses a variety of matters, including fund formation, regulatory compliance, exit strategies, private and public securities offerings, forming a SPAC, and guiding portfolio companies for their initial public offerings. In addition, Ms. Jin has extensive experience advising businesses through all stages of growth from start-up and capital raising right through to initial public offering and their ongoing securities law compliance and periodic reporting.
Mr. Tope provides investment fund sponsors, investors and principals with creative, commercial and realistic advice relating to fund formation and secondaries transactions. He brings a global perspective to his clients, having represented managers and investors in dozens of jurisdictions. Mr. Tope's sponsor-side clients regularly include prominent secondaries firms, private equity and hedge fund managers, real estate managers, middle market managers and startup managers/spinouts. He advises these clients with entity formation, introductions to service providers, discussions with placement agents, drafting of offering memorandums, negotiations with investors and Investment Advisers Act and Investment Company Act compliance, as well as guidance on ongoing operational funds. Mr. Tope has extensive experience with secondaries transactions including GP-led restructurings, tender offers, stapled secondaries and sales and purchases of significant pools of fund interests. Adam also draws on his experience as a former computer programmer to advise fund managers forming cryptofunds.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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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?
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