Key Takeaways
- • Global private equity executives publicly defended continuation funds at Hong Kong's flagship investment summit on Wednesday, November 3, 2026, despite persistent limited partner skepticism.
- • Jonathan Sokoloff, managing partner at Leonard Green & Partners, acknowledged significant LP resistance to the structure, stating "There are a lot of haters in the LP community" but that continuation funds "are here to stay."
- • The defense signals that the GP-led secondary vehicle has become a core liquidity tool for PE firms, even as investors question its governance and conflicts.
Summary
Global private equity executives are pushing back against growing investor skepticism toward continuation funds, according to Bloomberg, mounting a defense of the increasingly popular structure at Hong Kong's flagship investment summit on Wednesday.
Jonathan Sokoloff, managing partner at Leonard Green & Partners, acknowledged persistent resistance from limited partners to the vehicles. "There are a lot of haters in the LP community," he said, "But it's here to stay." His remarks underscore a gap between general partners, who continue to rely on continuation funds to provide liquidity and extend ownership of mature assets, and limited partners, who have voiced concerns about the structure.
The primary source does not provide specific fund sizes, deal values, or additional panelists, so the scope of the debate beyond Sokoloff's comments cannot be detailed here. For allocators, the exchange highlights that continuation funds remain a contested but entrenched feature of the private equity landscape, and that managers are actively defending the structure to their investor base.
Jonathan Sokoloff, managing partner at Leonard Green & Partners, acknowledged persistent resistance from limited partners to the vehicles. "There are a lot of haters in the LP community," he said, "But it's here to stay." His remarks underscore a gap between general partners, who continue to rely on continuation funds to provide liquidity and extend ownership of mature assets, and limited partners, who have voiced concerns about the structure.
The primary source does not provide specific fund sizes, deal values, or additional panelists, so the scope of the debate beyond Sokoloff's comments cannot be detailed here. For allocators, the exchange highlights that continuation funds remain a contested but entrenched feature of the private equity landscape, and that managers are actively defending the structure to their investor base.
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