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A comment on Private equity groups that buy companies they own. Parent comment

Re:Private equity groups that buy companies they own by yieldcrv on Thursday June 23, 2022 @05:02AM (#31846604)
LPs don't have a say.

Their ability to withdraw/redemption is often heavily constricted too.

(I’m not making an opinion on GP behavior yet)

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Re:Private equity groups that buy companies they own by collegeburner on Thursday June 23, 2022 @09:13AM (#31848607)
Uhh yeah they do. Maybe it's technically the GPs decision but I have watched GPs get their asses chewed by LPs and make a different call after those kinds of meetings.

More importantly literally all LPs have to do is not invest in the continuation fund. It costs them 0 money extra to close out their position in the old fund and leave. Continuation funds are 100% optional.

Also IMHO continuation funds can be useful if a PE firm thinks it has a real winner. It's harder than you think to find good places to place a lot of money so it will grow so I can understand why LPs might go for it in some cases.

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