Asia PE firm Affinity halts continuation fund plan 


Business & Finance

Reuters was first to report that Hong Kong-based Affinity Equity Partners has paused plans to launch a so-called continuation fund enabling itself and its investors to sell down their shares in companies because of unfavourable market conditions. A continuation fund is a new investment vehicle created by a private equity (PE) firm to transfer holdings of some existing investments. The concept has gained traction in Asia in recent years as PE firms’ exit from companies via initial public offerings (IPOs) or mergers and acquisitions became challenging. 

Market Impact

The pausing of its continuation fund plan highlights fewer options for PE firms to exit their investments in companies amid an economic slowdown and higher interest rates that have eaten into asset valuations and resulted in increased funding costs. 

Article Tags

Topics of Interest: Business & Finance

Type: Reuters Best

Sectors: Business & Finance

Regions: Asia

Win Types: Speed

Story Types: Exclusive / Scoop

Media Types: Text

Customer Impact: Important Regional Story

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