Continuation Vehicles from the LP Seat – Scott Ramsower (EP.523)

Continuation vehicles (CVs) in private equity represent a complex, often contentious, fourth exit route that requires rigorous, bespoke evaluation by Limited Partners. Scott Ramsower, Head of Private Equity Funds at the Teacher Retirement System of Texas, identifies ten primary LP concerns, ranging from conflicted pricing and the dilution of GP mindshare to the artificial inflation of fund metrics like DPI. While CVs can provide liquidity, they often mask deeper structural issues, such as the emergence of "zombie funds" where assets remain trapped without viable exit paths. Furthermore, the expansion of private equity into retail channels threatens the asset class's fundamental advantage: the ability to maintain a long-term, illiquid horizon. Navigating these challenges necessitates a shift toward "craftsmanship alpha," where LPs apply both quantitative and qualitative diligence to assess partnership alignment and the underlying quality of assets before committing capital.