Executive Summary
ILPA’s June 2026 draft Continuation Vehicle Guidance shifts the focus in GP-led secondary transactions from simply validating price to ensuring a transparent, well-governed sale process.
Recognizing the rapid growth of continuation vehicles and the inherent conflicts created when GPs effectively act as both buyer and seller, the guidance emphasizes competitive bidding, early LPAC involvement, enhanced disclosures, longer election periods, and protections for rolling investors rather than relying solely on NAV or fairness opinions, though third-party valuations and fairness opinions remain an integral corporate governance practice to be followed.
While the recommendations are not expected to fundamentally change how continuation vehicle transactions are structured, they raise the standard for governance and process integrity, giving LPs greater confidence that transaction pricing reflects a credible market outcome and that conflicts have been appropriately managed.
FEATURE ARTICLE
ILPA’s New Continuation Vehicle Guidance: Process Is the New Price Protection
Also in This Issue
Updated Metrics for
Private Credit, Equity, and Secondaries
Publicly Traded Private Credit
Venture Capital