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By Shanu SHERWANI, Private Equity Analyst
The growth of funds to extend the economic gains of performing assets has been one of the most significant trends in private equity over the last few years and will be one of the main trends in 2022.
Over the last several years, private equity sponsors have increasingly turned to continuation funds as a viable portfolio management tool. A sponsor moves one or more portfolio firms from an existing fund to a new special purpose entity in a continuation fund. Fund investors are frequently given the option of reinvesting the proceeds from, or rolling over, their investment in portfolio firms into the continuation fund or receiving cash for their interest in portfolio companies from new investors in the...
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