Conference Agenda
Please note that all times are shown in the time zone of the conference. The current conference time is: 15th Sept 2026, 08:45:10am CEST
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Daily Overview |
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FI 11: Illiquidity and Investor Behavior Location: LR M0.2 (Floor 0) Session Chair: Per J Strömberg, Stockholm School of Economics | |
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ID: 1761
Selling to Yourself: Continuation Funds in Private Equity 1: UVA Darden; 2: University of British Columbia; 3: University of Notre Dame; 4: Stanford; 5: Ohio State Continuation funds (CFs) are a recent financial innovation in which PE managers raise new funds to purchase assets from their existing funds. CFs have surged in popularity, accounting for 9% of PE exits in 2024 and raising twice as much as US IPOs. We show that CFs emerge when LPs are more heterogeneous and fund managers have earned carried interest in legacy funds. Assets transferred to CFs are better performing and larger than other assets in legacy funds. LPs overwhelmingly choose to exit rather than invest in CFs, the decision that appears to be driven by time-varying LP liquidity demands.
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