Continuation Vehicles in the Age of Zombie Funds: Legal Strategies for Sponsors and LP Protections

Historically, investors in private equity buyout funds expected to commit capital, with that capital deployed over a three- to five-year investment period. They expected profitable exits to follow during the subsequent three to seven years, resulting in the return of invested capital plus profits to investors — often with the cycle repeating through successor funds or investments with other sponsors. But as many existing buyout funds (especially mid-market) struggle to profitably divest... By: Robinson Bradshaw