How Private Equity Firm Audax Bought a Fund . . . From Itself.
Sponsored Private equity firm Audax Group announced Thursday that it has closed a deal to buy one of its own funds with the help of fellow investment firms AlpInvest Partners, Lexington Partners, and Hamilton Lane. Audax has closed what is called a continuation fund — a transaction that allows a private investment firm to hold onto portfolio assets for longer so they can have time to fully realize returns. Here’s how it works: a private investment firm sets up a new fund, then uses it to acquire the assets it already held in a separate fund. Existing investors are given the option...
Source: institutionalinvestor.com