2024年续期基金与跨基金市场洞察报告

2024 ContinuationFund and Cross-FundMarket Insights March 2025 Introduction Over the past year, we have witnessed arecord number of continuation fund andcross-fund transactions. Sponsors haveexplored innovative strategies to optimizeportfolios and unlock liquidity as thetraditional exit environment has remainedsluggish. The continuation fund market continues to evolve to meet the goals of GPs,LPs, and buyers. Throughout the year, we saw a resurgence in single-asset CVsrelative to multi-assets as GPs focused on their trophy assets amid a strongpricing environment. However, multi-assets remained a prominent part of themarket and continue to offer GPs the opportunity to provide their investorsliquidity at scale. •Fund-level affiliate transactions have proven to be animportant tool for GPs across the economic cycle.Sponsors are undertaking an increasingly wide variety oftransactions to retain attractive assets, maximize valuepotential, support/strengthen a portfolio company’sfinancial profile, and manage end-of-life funds. Historically, sponsors used a variety of other cross-fund transactions to identifyopportunities, manage investments, and optimize portfolios. In 2024, weobserved a record number of these transactions that crossed funds orotherwise placed the sponsor in a potential conflict-of-interest position, andwe expect this will continue increasing throughout 2025, given current industryand market dynamics. •Limited partner advisory committees (LPACs) areincreasingly approached by sponsors in connection withsuch transactions, and GPs must implement bestpractices to manage the actual or perceived conflicts ofinterest. With increased regulatory and investor scrutiny,independent financial advisors can help sponsorsmitigate legal, regulatory, and execution risks andimprove the transparency of these transactions. We observed a notable uptick in transactions completed in asset classesoutside of traditional buyout, including credit, venture, andenergy/infrastructure. With each facing a unique set of market forces, sponsorsused creative strategies to navigate the current opportunities and challenges. •Houlihan Lokey has been the market leader in providingfairness and valuation opinions. Our dedicated team hassupported hundreds of leading sponsors across a widerange of continuation and cross-fund transactions. The market is projected to reach new records in 2025, backed by a variety oftailwinds, including (i) further demand from LPs for liquidity solutions, (ii) astronger pricing environment, (iii) continued expansion into additional assetclasses, and (iv) an expanding buyer universe supported by retail capitalvehicles and so-called evergreen funds, targeted to high-net-worth individuals,which have greatly accelerated growth in dedicated capital to secondaries. Record Outlookfor 2025 Types of Fund-Level Affiliate Transactions Fund affiliate transactions can take various forms, broadly categorized into (i) continuation fund transactions and (ii) cross-fundtransactions. While both structures offer overlapping benefits, such as generating liquidity for LPs and/or providing portfoliocompanies with additional capital, they also present distinct advantages relative to one another. Transactions may haveelements of both acontinuation fund and across-fund transaction.Sponsors may have theirlatest fund participate asan investor in acontinuation fund or maymerge two portfoliocompanies together priorto selling to a specialpurpose vehicle. Continuation Fund Transactions Cross-Fund Transactions •Transactions between funds of the same sponsor, including: •Transactions involving the sale of one or more assets in existing fundsto a newly created vehicle in order to provide existing LPs with aliquidity option and give the sponsor additional time and capital tomaximize value over an extended runway. –Mergers of portfolio companies held in different funds.–Sales of portfolio companies from one fund to another fund of thesame sponsor.–Acquisitions of third-party targets by portfolio companies in whichequity capital is provided by a subsequent fund.–Carve-outs or divestitures of assets from existing portfoliocompanies.–Fund seeding in which existing investments are contributed to anew fund vehicle prior to an external capital raise. –Multi-Asset Continuation Funds:Involve the sale of some or all ofthe remaining assets in one or more funds, often to manage end-of-life fund situations. –Single-Asset Continuation Funds:Involve the sale of one portfoliocompany, often a “trophy” asset, to crystallize returns for existingLPs while giving the sponsor time to further execute their value-creation plan. Continuation funds typically provide LPs with a “cash or roll”option, enabling them to either receive cash based on thetransaction price or reinvest in the continuation fund to retainexposure. Cross-fund transactions typically occur between funds managed bythe same sponsor and may not involve new third-party investors. Th