Continuation Funds Here to Stay Even as IPOs Rebound, Study Says

Private market investors are increasingly seeing assets rolled into complex continuation vehicles, suggesting the structures will remain in vogue, even though the majority are still choosing to cash out, according to a study by Coller Capital.

Nearly two-thirds of limited partners, which include pension funds and sovereign wealth funds, are noticing “second-generation” continuation vehicles, or “CV squareds,” according to Coller’s global private capital barometer report on Monday.

The data indicate “growing comfort with these structures as long-term investment opportunities as well as exit routes,” the report said. At the same time, about 81% of LPs are opting to take ...