Brian Forman Interviewed in P&I on Evolution and Advantage of Continuation Funds
Partner & Chair of Investment Funds and Advisers Brian Forman was quoted in a Pensions & Investments article entitled “Stars Align for Continuation Funds to Thrive.” The article discussed how continuation funds – a growing corner of the private markets secondary market – may expand as managers look for liquidity for limited partners while continuing to add value to existing portfolio companies. Industry executives tout the GP-led secondary deal strategy as a way to give LPs cash and GPs partial exits and the opportunity to continue managing successful assets at the end of a fund’s term.
Brian spoke to how continuation funds have evolved, stating that in the past, managers used these funds to exit their losers, but that is no longer the case. He explained that “continuation funds have evolved into vehicles to raise more capital for good companies” while providing optionality to investors. He stated that in these transactions, investors can get a fair choice as long as the manager has a third party provide a true valuation or serve as an arms-length buyer, while investors that roll their investment into the continuation fund have the opportunity to participate on existing terms.
Read the full article here.
Contacts
- Brian R. Forman Partner & Chair, Investment Funds and Advisers
- bforman@morrisoncohen.com
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