In our new Talking. Secondaries. series, we will seek to demystify the secondaries and synthetic secondaries markets and provide insights into the variety of tools available to GPs when looking to provide liquidity to their limited partners and their portfolios.
The Institutional Limited Partners Association guidance on Continuation Funds landed last month and, whilst some of what they describe reflects the operation of well run processes already being undertaken, these guidelines seek to address “growing LP frustrations” and set out principles GPs and LPs should follow to reduce the perceived and actual misalignment of interests in deals which are, by their very nature, conflicted.
In the fourth instalment of our Talking. Secondaries. series, we set out some of the key points from the guidance which is intended to help encourage deal processes and structures which support the general principles that: (a) CF deals should maximise value for existing LPs; and (b) Rolling LPs should be no worse off than if the transaction had not occurred.
