E325: Inside the $100B Continuation Vehicle Boom

The podcast explores the dynamics of single asset continuation vehicles (CVs) within the secondary market, focusing on why GPs are increasingly utilizing them. It highlights that CV deals often involve high-quality assets, identified as long-term compounders, which GPs prefer not to sell due to their potential for continued growth. A key point is the significant alignment of interest, with GPs making substantial capital commitments (8-10%) into CVs, far exceeding typical buyout deals, and rolling 100% of the proceeds from the sell side into the continuation vehicle. The discussion also covers the tiered carry structure common in CVs, which incentivizes GPs to achieve high returns, and touches on the potential for CVs in the venture capital space to address liquidity needs.