A growing number of oil and gas sponsors are using continuation vehicles (CVs) to provide liquidity to investors while extending ownership of mature assets, reflecting broader growth in the secondaries market.
Haynes Boone Partner Vicki Odette spoke with Mergermarket about the factors driving CV activity, including sponsors’ focus on returning capital to investors and the role LP investment mandates can play in continuation vehicle transactions.
Read an excerpt below:
“There's been a lot of money stuck in existing assets, and so to the extent that they can return capital to their investors, [GPs] are getting happier investors,” said Vicki Odette, a partner and global chair of Haynes Boone’s investment management practice group.
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LPs operating under rigid mandates may be forced to sell at the first available exit, including CV transactions, said Odette. It very much depends on how much discretion LPs’ internal rules allow.
To read the full Mergermarket article, click here.
