ILPA Issues Guidance on GP‑Led Continuation Vehicles

On October 20, 2026, the Institutional Limited Partners Association (ILPA) released its most detailed statement yet on GP‑led continuation vehicle (CV) transactions, titled “Continuation Vehicles: Advancing Alignment through Best Practices.” The guidance outlines recommended procedures for structuring, documenting, and approving continuation deals, addresses fee arrangements and LP‑GP alignment issues, and proposes best‑practice timelines and governance mechanisms. Private‑equity sponsors find this useful for ensuring smooth transitions of existing portfolios while maintaining LP confidence and mitigating conflicts of interest. Institutional investors can use the guidance to benchmark their own consent processes, evaluate proposed continuation terms, and assess the transparency of fee structures. Counsel advising GPs should review the document to update internal CV policies, share the framework with LP counsel, and ensure compliance with the new best‑practice framework. Clients should monitor for potential regulatory or SEC scrutiny of continuation arrangements and track any subsequent revisions or clarifications to ILPA’s guidance. Those already employing CVs should compare their structures against the new standard and consider aligning their future vehicles with ILPA’s recommendations.