United States: To be Continued (or not)
By: Yasho Lahiri
Continuation funds exist because closed-end funds are better suited to a perfect world than an imperfect one.
In a perfect world, as a closed-end fund nears the end of its term, the few remaining portfolio companies the fund owns are ready for sale at attractive prices. The sales happen. Proceeds from the sales wind their way through the fund waterfall to grateful limited partners and successful sponsors. The fund is wound up just as its term comes to an end.
Read More