For decades, private equity has been one of the most attractive asset classes for investors seeking long-term growth, but it has also come with one significant drawback: illiquidity. Unlike public equities, which can be sold at the click of a button, private equity funds often require investors to commit their capital for 10 years or more, with limited options for early exit. But in recent years, the private equity industry has developed a mechanism to offer flexibility without sacrificing control or long-term value. That mechanism is known as a continuation fund. What Is a Continuation Fund? At its core, a continuation fund is a new investment vehicle created by a private equity firm – often called the general partner or GP – to take ownership of one or more portfolio companies that are currently held in an older fund nearing the end of its term. Rather than selling those assets on the open market or taking them public, the GP effectively sells them to a new fund that it also manages. This transaction provides an opportunity for the existing investors in the original fund –