How Continuation Funds Let PE Firms Hold Winners Longer

In this episode, Lucas and Luna explore the rise of continuation funds—a controversial yet increasingly common mechanism in private equity that allows firms to hold onto their best portfolio companies well beyond the traditional 5-7 year fund life. Using the example of Leonard Green & Partners' $1.7 billion continuation vehicle for Aspen Dental in 2020, they unpack how these single-asset GP-led deals work, why limited partners are both attracted and wary, and what regulatory scrutiny from the SEC means for the future of the strategy. They also discuss how continuation funds create a second pricing moment for assets, enabling GPs to crystallize gains while retaining upside. The episode closes with a reflection on whether this trend fundamentally changes the 'temporary ownership' ethos of private equity. #PrivateEquity #ContinuationFunds #GPledDeals #LeonardGreen #AspenDental #SEC #LimitedPartners #SingleAsset #FundLife #PEStrategy #Business #Finance #Investing #WealthManagement #FexingoBusiness #BusinessPodcast #PodcastEpisode #May2026 Keep every episode free: buymeacoffee.com/fexingo