In the Press
February 1, 2024

Will More 'Smart Money' Roll into Continuation Funds? (FundFire)

Private fund managers pursuing continuation fund structures, which today see most of their limited partners cash out of the deals, may soon see those numbers start to shift as more investors gain experience with the offers and gear up to boost their due diligence resources. While up to 90% of limited partners have typically taken out their capital in those deals, a shift is bubbling in the market, said Krishna Skandakumar, a partner in the Private Investment Funds practice. “That trend is already starting to change,” he said to FundFire. “A lot of institutional LPs are starting to onboard experienced professionals, hiring people from investment banks or dedicated secondary shops." "The stay-or-go question will only get more focus as the market grows, with current continuation vehicle activity is “just scratching the surface," Skandakumar mentioned. "There has already been a big increase in volume. It could double or triple in the next five to 10 years.”