A continuation fund (or continuation vehicle) is a secondary PE transaction in which a General Partner transfers one or more assets from a maturing fund into a newly created vehicle, giving existing LPs the choice between liquidity (selling their interest at the transfer price) or rolling over into the new vehicle. It allows the GP to hold high-conviction assets beyond the original fund's term while providing an exit opportunity for LPs who need liquidity. Continuation funds have grown from a niche instrument to a mainstream GP-led secondary strategy, representing an estimated 30–40% of the secondary market by volume in Europe.

The key governance issue in a continuation fund is the conflict of interest: the GP simultaneously represents the selling fund (seeking maximum price) and the buying vehicle (seeking minimum price). This requires an independent fairness opinion confirming that the transfer price is fair to both sets of LPs. The LP Advisory Committee (LPAC) must approve the transaction, and most LPAs require a supermajority LP vote for GP-led transactions. The independent valuation of the transferred assets is therefore central to the governance process.

At Hectelion, we provide independent fairness opinions for continuation fund transactions involving Franco-Swiss PE assets, enabling GPs and LPACs to make informed decisions with a documented, defensible valuation.

At Hectelion, we provide independent fairness opinions for GP-led continuation fund transactions in the Franco-Swiss mid-market.