Scott Pasquini’s Outlook on Continuation Vehicles
Orchard co-founder Scott Pasquini believes the continuation vehicle market could grow as much as four times its current size, according to Buyouts Insider. He attributes this potential expansion to general partners (GPs) seeking to escape the timeline constraints of closed-end fund structures, as he explained in an interview with the publication.
Reasons Behind the Market Shift
Pasquini told Buyouts that GPs are looking to unshackle themselves from the rigid timelines imposed by closed-end funds, which could drive significant growth in the continuation vehicle market. This perspective highlights how such vehicles allow for extended investment periods without the pressures of fund lifecycles, according to the same source.
Context in the Secondaries Space
As widely known in private equity, continuation vehicles are secondary market tools that enable the transfer of assets from one fund to another, often extending hold periods—though Pasquini’s comments specifically tie this to market growth driven by GPs’ strategies. According to Buyouts Insider, this interview underscores ongoing discussions around secondaries as a solution for emerging managers navigating fund structures.
Implications for Emerging Managers
The article, tagged with ‘Emerging Managers’ and ‘Secondaries,’ features Pasquini’s insights as part of a broader conversation on market evolution, according to Buyouts Insider.
