Exits & Liquidity
Continuation Vehicle
A new fund entity created to hold select assets from a prior fund, giving the GP more time to maximize value on their best investments.
A continuation vehicle (CV) is a GP-led secondary transaction where top-performing portfolio companies are transferred from an existing fund into a new special purpose vehicle. Existing LPs can choose to roll their exposure into the CV or cash out at a negotiated price. New investors can also participate. CVs have become increasingly popular as an alternative to premature exits.
In Practice
Rather than forcing an IPO in a down market, the GP moved their two best companies into a continuation vehicle, giving existing LPs the option to cash out at 5x or roll into the new structure.
Why It Matters
Continuation vehicles solve the tension between fund lifecycle limits and company growth timelines. They let GPs hold winners longer while giving LPs liquidity options.
VC Beast Take
The best investments often need more time than a 10-year fund allows. CVs are the industry's answer to that structural mismatch.
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