As continuation fund transactions increase in prevalence, greater transparency and consistency in these deals will be critical to their efficiency and quality of execution. ILPA’s continuation fund guidance, developed alongside LPs, GPs and industry experts, provides parameters for a well-run transaction. It calls for GPs to pursue processes and deal structures that maximize alignment and LP engagement. When LPs are better able to anticipate how to successfully engage in the process and request adequate disclosures, they can transact in a manner that serves the best interest of their beneficiaries and the broader industry.
Given the highly unique nature of these transactions and broad range in scope of deals, the guidance may not be universally appropriate or applicable to every circumstance. Rather, it is intended to provide general parameters for well-run processes that will encourage productive dialogue and foster more informed decision-making by LPs.
