Client alert · August 2026
The Second Exit
Tax trade-offs in continuation funds
A continuation vehicle is a miniature capital market, and tax is one of the prices being negotiated in it.
In brief
What the cashing-out LP, the rolling LP, and the new money each give up when a sponsor moves a company into a continuation vehicle, with the basis and liability arithmetic laid out step by step.
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This alert is for general information only and is not tax, legal, investment, or accounting advice. Consult your own advisers before acting. Carlos A. Schmidt, MBT, MBA, CPA · Managing Member · carlos@lapresallc.com · (917) 558-6393.