Asset Class
Continuation Vehicle (CV)
A Continuation Vehicle is a GP-led structure that transfers one or more assets from an existing fund into a new vehicle, offering liquidity options and extended hold periods. Allocators evaluate it through pricing fairness, conflicts management, and alignment of incentives.
Continuation vehicles are a form of GP-led secondaries used to extend ownership of high-conviction assets. For allocators, the defining issue is conflict: the GP is both seller and buyer-side decision-maker.
How allocators define CV exposure
They segment by:
- Single-asset vs multi-asset structures
- Pricing process: third-party fairness opinions, market checks
- LP options: sell/roll/reinvest; information symmetry
- Alignment: GP rollover, carry resets, fee terms
- Governance: consent mechanics and conflict controls
- Exit realism: why extended hold increases value, not just time
Allocator framing:
“Is this a fair liquidity solution—or an economics reset?”
What slows decisions
- Unclear pricing and weak market checks
- Carry resets without commensurate value creation
- Limited transparency on asset risks and exit plans
- LP process perceived as pressured or asymmetric
Key allocator questions
- What independent market check validated price?
- What is GP rollover and economics alignment?
- Why is extended hold expected to create value?
- How are conflicts governed and documented?
- What is downside if exit is delayed further?
Key Takeaways
- Continuation vehicles demand conflict literacy and pricing discipline
- Alignment and process fairness drive allocator trust
- Extension must be justified by value creation, not convenience