Benjamin Carper

The continuation vehicle market is in a dustbin for companies that cannot be sold.

Is the

growth trajectory of the business that has been executed so far, does that have legs to continue over another five-year holding period as illustrated?

Has the company reached a scale where M&A is no longer adding to the bottom line or the wallet share for customers cannot be further maximized?

So the

Figuring out whether or not there's a disconnect between the last five years and the future five years is another important element.

The vast majority of the capital going into the CVs right now represent institutional investors who obviously represent LPs, traditional limited partners, investing in private equity, private credit, real assets.

And there's a host of established large players in that category between Collar Capital, Alpenvest, HarperVest, Neuberger Berman.

And there are also hosts, as I referenced a little bit.

a little while ago, a host of new entrants who are really focused on single asset continuation vehicles.

And some of those are particularly focused on different sectors, such as software and tech enabled services, businesses, and some of them are

are profiling more like large cap buyout funds that see continuation vehicles as an extension of established power rallies.

There's also a host of, I would say, the largest global capital allocators that are profiling as LPs kind of powering the private equity ecosystem.

So

the large US pensions, the Canadian pensions, the Middle Eastern and East Asian sovereigns.

that you're seeing as frequent LPs and direct investors in companies, those groups are responsible for a lot of the demand for continuation.

1,000%.

For those LPs that are very keen on co-investment,

opportunities with their sponsor partners, continuation vehicles are just another way to go about exactly that and buy companies really in partnership with their existing relationships.

You could make the argument that continuation vehicles are bringing assets closer and funded identifiable opportunities closer to LPs versus the more nebulous