Key Takeaways
- • The Institutional Limited Partners Association (ILPA) has issued guidance on continuation vehicle (CV) transactions, reflecting a CV market that differs substantially from the one it addressed three years ago.
- • ILPA's guidance is aimed at balancing the interests of a broad set of market participants, according to PEI Private Equity.
- • The core principle under discussion is that general partners (GPs) whose CV structures or practices diverge from the prevailing market norm will be expected to justify those departures.
Summary
The Institutional Limited Partners Association (ILPA) has published guidance addressing continuation vehicles (CVs), the secondary structures through which private equity general partners move assets into new vehicles, according to PEI Private Equity. The article, authored by Madeleine Farman and filed as an editor's view in the secondaries and regulation coverage, argues that the guidance responds to a CV market that has changed considerably since ILPA's previous work on the subject three years ago.
The trade body faced the difficult task of satisfying a broad range of stakeholders, including limited partners, general partners and other market participants with differing interests in CV transactions. PEI frames the central takeaway as a expectation of accountability: GPs whose CV arrangements depart from the emerging norm should be prepared to explain their reasoning to investors.
The source article is a short commentary and does not provide detailed transaction figures, fund names or specific guidance provisions. Readers seeking the specific terms of the ILPA guidance should consult the original ILPA publication.
The trade body faced the difficult task of satisfying a broad range of stakeholders, including limited partners, general partners and other market participants with differing interests in CV transactions. PEI frames the central takeaway as a expectation of accountability: GPs whose CV arrangements depart from the emerging norm should be prepared to explain their reasoning to investors.
The source article is a short commentary and does not provide detailed transaction figures, fund names or specific guidance provisions. Readers seeking the specific terms of the ILPA guidance should consult the original ILPA publication.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.