PE Firms Defend Continuation Funds Against Investor Ire
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Private equity executives defended continuation funds at Hong Kong’s investment summit on Wednesday.
- ✓Jonathan Sokoloff said, "There are a lot of haters in the LP community, but it's here to stay." These funds help firms hold assets longer, though many investors worry about potential conflicts regarding exits and valuations.
Story at a Glance
- Category
- BUSINESS
- Reported By
- mint
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
(Bloomberg) -- Global private equity executives are pushing back against investor skepticism over continuation funds, mounting a defense of the increasingly popular structure at Hong Kong's flagship investment summit on Wednesday.
"There are a lot of haters in the LP community," said Jonathan Sokoloff, managing partner at Leonard Green & Partners, acknowledging persistent resistance from limited partners. "But it's here to stay."
The comments come as continuation funds have grown into an increasingly important source of liquidity, particularly after a difficult few years for exits through initial public offerings. The vehicles allow private equity firms to hold promising portfolio companies for longer, giving them more time to create value, but remain contentious because of potential conflicts between general partners rolling assets into new vehicles and existing investors seeking an exit.
Unlock the Full Story with ArthNow Premium
To continue reading this complete financial story and in-depth market context, upgrade to ArthNow Premium. Enjoy unlimited access across Web and Mobile.
mint
Read the full, original unfiltered story directly on the publisher's portal.