CVs Enter the Governance and Pacing Phase

Continuation vehicles are evolving into a mainstream way to manage exits, liquidity, and portfolio pacing, with tougher scrutiny on pricing and LP protections.

Updated

What is this trend?

Continuation vehicles are moving from ad hoc liquidity fixes to repeatable portfolio tools, making pricing, disclosure, and LP election design central to GP-led exits.

  • CVs are now used to pace exits, retain assets, and manage liquidity across PE and credit.
  • ILPA’s draft guidance raises the bar on rationale, pricing validation, and disclosure timing.
  • LP choice is expanding, with more emphasis on roll, cash-out, and remain-in-place elections.
  • Deal teams need tighter coordination across investment, valuation, legal, and IR.
  • The edge is shifting from structuring the vehicle to defending the process and economics.

What’s the latest?

Sun Capital closed a second continuation vehicle for Anderson Global on Sept.

How it developed

  1. Embedded AI Diligence, Continuation Liquidity Engineering, and Controlled Waterfall Data Infrastructure
  2. Refinancing stress, continuation vehicles, and auditable AI controls reshape dealmaking

Go deeper

Curated long-form picks on this trend — podcasts, videos, and analysis, by seniority.

Stay ahead in Private Equity & Growth Investing

Get the weekly Private Equity & Growth Investing brief in your inbox — the developments, what they mean by seniority, and what to do next.