Free private markets document template
Continuation Fund LP Evaluation Template
Create an LP continuation fund evaluation report covering the asset, valuation, rollover or cash-out decision, conflicts, governance, economics, alternatives and recommendation.
01
Executive summary
Fund Manager proposes Proposed Continuation Fund, transferring Two mature software businesses representing 31% of legacy-fund NAV. The LP election under consideration is to roll 100% of the existing interest.
02
Assets transferred
Two mature software businesses representing 31% of legacy-fund NAV
03
Manager assessment
Fund Manager will retain control of the assets through the continuation vehicle. Review team continuity, operating plan credibility and alignment with both selling and new investors.
04
Legacy performance
Legacy Fund IV: Lead asset grew ARR 19% year-over-year with 29% EBITDA margin; second asset is completing a pricing and sales-force reset.
05
Valuation & cash-out option
Cash consideration at $248m enterprise value for the lead asset. Evidence considered: Independent fairness opinion, strategic-buyer indications and sponsor-led value-creation case.
06
Continuation-fund structure
$780m including new primary capital. Rollover into the continuation fund on proposed new-investor terms; tax treatment and eligibility require confirmation by the LP’s advisers.
07
Forward investment case
Further international expansion, enterprise upsell, margin improvement and add-on acquisitions over a four-year hold
08
Returns & sensitivity
Expected return: 2.1x gross MOIC and approximately 20.4% gross annualized return from rollover value over four years, assuming one initial outflow and one terminal distribution. Downside sensitivity: 1.2x gross MOIC if growth falls to 7%, margins stall and exit multiple compresses by two turns.
09
Conflicts & process integrity
LPAC approved the process; independent advisor ran a buyer outreach; valuation committee reviewed conflicts and fairness opinion
10
GP alignment & economics
GP rolls 85% of existing carry and contributes $20m of new capital; economics reset to 1.25% management fee and 15% carry
11
Governance & LP protections
Quarterly reporting, LPAC oversight, key-person protections, no-fault rights and customary conflict controls
12
Liquidity impact
Rollover defers $31m of expected near-term distributions but avoids reinvestment risk at a potentially discounted sale price
13
Alternatives & election analysis
Accept cash, partial rollover, seek LP-led secondary liquidity or request sale to a third party
14
Key risks
valuation optimism, extended hold period, asymmetric information, conflict management and concentration in the lead asset
15
Election conditions
Confirm final fairness opinion, buyer-process disclosure, tax analysis and governing-document protections
16
Recommendation
Roll the existing interest, subject to the stated election conditions and no material change in valuation or economics