
Continuation Funds: A New Trend in Private Equity
In today's tough market, private-equity firms are turning to continuation funds, allowing investors to cash out while retaining ownership of top-performing companies. Real Chemistry's recent sale to New Mountain Capital exemplifies this trend, with about 80% of investors opting to cash out, reaping significant returns. Continuation funds are gaining popularity, accounting for a record portion of private-equity exits. While these funds help provide liquidity, they are also attracting attention as firms seek to hold onto their best assets instead of selling. This shift reflects the evolving landscape of private equity in challenging economic times.