The Unicrunch — All aboard the continuation vehicle
- Sami Vukelj
- +Peter Benson
A new trope
Imagine you’re Luke Skywalker stuck in the trash compactor. On both sides the walls are coming in. On one side it is LPs requesting payouts on committed funds, and on the other side it is a muted M&A market that makes selling assets a tough proposition. What do you do?
Fortunately, there is a solution that is the financial equivalent of R2-D2 pushing the stop button: the continuation vehicle, where a fund manager can keep hold of assets and make such payouts — it’s an increasingly popular option for today’s GP stuck with the walls coming in on them.