Continuation Fund ModelFree Financial Model Download

This continuation fund (GP-led secondary) model evaluates a fund structure where a General Partner transfers high-performing assets from a maturing fund into a new vehicle, offering Rolling LPs a choice to stay or exit at a transfer price, while raising new capital from New LPs. The model sizes the fund ($300M), establishes the transfer price ($260M for a five-asset portfolio), and projects asset appreciation and realisation across a 5-year hold period. It calculates gross proceeds from exit multiples applied to asset entry values; deducts management fees, transaction costs, and administrative drag; and feeds the net distributable amount into a waterfall that calculates returns to Rolling LPs and New LPs at different transfer price entry points.

The model includes a portfolio schedule showing each asset's entry equity value, appreciation rate (15% base case annual), exit year, exit multiple, and gross/net proceeds after transaction costs. A fund cash flow sheet tracks capital calls (87% in Year 1 for the transfer price, remainder for follow-on reserves and fees), management fees that switch from committed capital in Years 1–2 to invested capital (NAV) in Years 3–5, and distributions. A waterfall section implements a European whole-fund carry structure with 8% hurdle, 100% GP catch-up, and 20% carry. Returns sheets calculate LP IRR and MOIC separately from the transfer price perspective.

This model is used by secondary fund managers evaluating GP-led secondary opportunities, institutional LPs assessing the fairness of proposed transfer prices, and continuation fund sponsors modelling LP economics across scenarios. It ensures fund sizing covers the transfer price and preserves carry incentives for the GP, preventing the common error of undercapitalisation that plagued prior builds.