The secondaries market is seeing its busiest year on record, smashing full-year deal volume and fundraising records through three quarters. Deal volume is expected to reach or surpass $200 billion by the end of this year, and next year is expected to be just as big, if not bigger. Another lingering CV issue facing LPs is the option, or lack thereof, to roll with a status quo. What a true status quo option looks like can be different in the eyes of LPs and GPs, potentially causing friction. Robert Emerson, a partner in Goodwin’s Private Equity and Private Investment Funds practices, notes that the process for CVs is less standardized and more complex than a typical LP-led transaction. “Certain things do inevitably have to change when you’re structuring a continuation vehicle,” Emerson says. “To the extent that the CV, whether for tax, regulatory, or other reasons, requires something to be different, then you begin the questions of, ‘Okay, how different are things going to be?’”
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