Continuation Fund
A GP-led secondary structure where one or more assets are moved from an existing fund into a new vehicle, allowing the GP to continue managing the assets while existing LPs choose to roll, sell, or take a structured option.
Continuation Fund explained
A continuation fund moves one or more assets from an existing fund into a new vehicle so the manager can keep holding them. It is a liquidity event for LPs who want out and an extended hold for those who roll. Because the manager sits on both sides, the governance and valuation record around the transaction carries most of the weight.
How it works in practice
- The valuation basis and any third party opinion are documented in the deal record.
- Rolling, selling and structured options are tracked per LP with elections captured.
- Advisory committee consents and conflict disclosures are retained with the file.
Common mistake
Treating the transaction as an internal transfer. It is a sale process, and the record should read like one.
Why it matters in private capital
Continuation Fund sits inside a chain of decisions that runs from sourcing through diligence, investment committee, portfolio monitoring and LP reporting. When each stage lives in a different tool, the evidence behind the decision is rebuilt at every handover. Keeping the concept on one record is what makes the fund able to explain, not just report, what it did.
How Reuben AI handles Continuation Fund
Reuben AI is one platform for the full private capital workflow. Deal intake and screening at /deal-flow-management, diligence and IC memos at /ic-memo-software, portfolio monitoring and LP reporting at /lp-reporting-software all read from the same record, so Continuation Fund does not need to be re-entered per tool. Pricing is at /pricing.
Frequently asked questions
What is Continuation Fund?
A GP-led secondary structure where one or more assets are moved from an existing fund into a new vehicle, allowing the GP to continue managing the assets while existing LPs choose to roll, sell, or take a structured option.
How does Continuation Fund work in practice?
A continuation fund moves one or more assets from an existing fund into a new vehicle so the manager can keep holding them. It is a liquidity event for LPs who want out and an extended hold for those who roll. Because the manager sits on both sides, the governance and valuation record around the transaction carries most of the weight.
What is the most common mistake with Continuation Fund?
Treating the transaction as an internal transfer. It is a sale process, and the record should read like one.
How does Reuben AI handle Continuation Fund?
Reuben AI keeps Continuation Fund on the same record as sourcing, diligence, investment committee, portfolio monitoring and LP reporting, so the underlying evidence does not have to be rebuilt for each workflow.
Related terms
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