Continuation fund

Also called: GP-led secondary

In one line

A new fund set up to buy assets from an older fund, giving the original investors liquidity while the assets keep running.

In plain English

Mainly a venture/PE mechanism: a fund nearing the end of its life sells its holdings (sometimes including stakes in your company) into a new 'continuation' fund, so its investors can cash out.

If you were explaining it to a 5-year-old

A toy club that's closing sells all its toys to a brand-new club, so the old club's members get their coins back.

Why it matters when you sell

Continuation funds can be buyers of large private stakes, occasionally creating secondary opportunities around your company.

Put it to use

How to find a buyer

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Sources

A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.

Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.

Continuation fund

Related terms

Put it to use