Single-Asset Continuation Vehicle (Single-Asset CV)
Private Equity glossary · Private Equity Fundamentals
Definition
A continuation vehicle structured to hold ONE 'crown jewel' asset transferred from the original fund — allowing the GP to hold an exceptional asset past fund-life constraints while crystallizing carry on the transferred portion. Existing LPs are offered cash exit at a negotiated transfer price or rollover into the CV (typically with new economics: 1-1.25% management fee, 10-15% carry over 7-8% hurdle, reset from original fund). Pricing typically at a small premium to recent NAV reflecting forward growth and stabilized valuation methodology. The GP-conflict (GP represents both selling fund LPs and buying CV LPs) is the defining governance challenge — institutional best practice requires LPAC approval, fairness opinion from an independent valuation firm, and competitive bid process with multiple secondary buyers.
Single-Asset Continuation Vehicle (Single-Asset CV) in plain English
Private equity funds have an expiration date, so eventually the manager has to sell everything and return the cash — even a company that's still growing beautifully. A "single-asset continuation vehicle" is a brand-new fund created to hold just ONE standout company (the "crown jewel") moved over from the old fund, so the manager can keep owning it past the deadline. Existing investors get a choice: cash out at a negotiated price, or roll their stake into the new fund under fresh terms. The obvious risk is that the same manager is both the seller (for the old fund) and the buyer (for the new one), so best practice demands an investor-committee sign-off, an independent valuation firm's "fairness opinion," and real competing bids to prove the price is right.
Also called: Single-Asset CV
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