Deals
Buyout Firms Are Finding It Harder to Hang Onto a Key Source of Fees
- Value of funds completed in first half fell 32% to $19 billion
- Campbell Lutyens report highlights secondary market softness
Photographer: Audun Bakke Andersen/Moment RF/Getty Images
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It’s getting harder for the private equity industry to hang on to long-term assets while still raking in the fees they throw off.
Institutional investors are souring on so-called continuation funds, which private equity firms deploy when they want to keep managing assets in traditional buyout funds that are about to mature -- often to avoid taking portfolio companies public prematurely or being forced to sell them at unfavorable prices.