Key Takeaways
- • Senior executives from Leonard Green & Partners, Hamilton Lane, Carlyle and Bain Capital publicly defended the growing use of continuation funds, arguing they provide liquidity and support longer-term value creation, according to Bloomberg.
- • Leonard Green managing partner Jonathan Sokoloff acknowledged limited partner resistance but said continuation vehicles have become a permanent feature of the private equity market.
- • Hamilton Lane co-CEO Juan Delgado-Moreira said assets transferred into continuation vehicles have historically generated average investment multiples of approximately four times, outperforming top-quartile buyouts.
- • Carlyle co-president John Redett said higher interest rates are shifting the industry toward operationally driven returns and active value creation.
- • Bain Capital chairman John Connaughton suggested the changing environment could usher in a new period of strong private equity performance.
Summary
Senior private equity executives from Leonard Green & Partners, Hamilton Lane, Carlyle and Bain Capital have defended the expanding use of continuation funds, according to a Bloomberg report. The executives argue that these structures provide liquidity and support longer-term value creation, even as limited partners (LPs) have raised concerns about potential conflicts of interest.
Speaking at the Global Financial Leaders' Investment Summit in Hong Kong, Leonard Green managing partner Jonathan Sokoloff acknowledged resistance among LPs but said continuation vehicles have become a permanent feature of the private equity market. His comments reflect a broader industry view that continuation funds are no longer an exceptional tool but a standard part of how general partners manage aging assets.
Hamilton Lane co-CEO Juan Delgado-Moreira reportedly argued that independent valuations and investor advisory committee approvals help address conflict-of-interest concerns. He said assets transferred into continuation vehicles have historically generated average investment multiples of approximately four times, outperforming top-quartile buyouts. The figure is a company-cited historical average and was not independently verified in the report.
Carlyle co-president John Redett said higher interest rates are pushing the industry toward operationally driven returns, placing greater emphasis on active value creation rather than financial engineering. Bain Capital chairman John Connaughton suggested the changing environment could usher in a new period of strong private equity performance.
Speaking at the Global Financial Leaders' Investment Summit in Hong Kong, Leonard Green managing partner Jonathan Sokoloff acknowledged resistance among LPs but said continuation vehicles have become a permanent feature of the private equity market. His comments reflect a broader industry view that continuation funds are no longer an exceptional tool but a standard part of how general partners manage aging assets.
Hamilton Lane co-CEO Juan Delgado-Moreira reportedly argued that independent valuations and investor advisory committee approvals help address conflict-of-interest concerns. He said assets transferred into continuation vehicles have historically generated average investment multiples of approximately four times, outperforming top-quartile buyouts. The figure is a company-cited historical average and was not independently verified in the report.
Carlyle co-president John Redett said higher interest rates are pushing the industry toward operationally driven returns, placing greater emphasis on active value creation rather than financial engineering. Bain Capital chairman John Connaughton suggested the changing environment could usher in a new period of strong private equity performance.
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