A "continuation vehicle" in private equity is:
Continuation vehicles let existing investors sell or roll over into a new vehicle that keeps holding the assets.
The concept: How a fund exits its investments
The fund exits portfolio companies through IPOs, strategic sales, secondary sales to other funds, or buybacks (chapter 7). As exits happen, distributions are paid to investors through the waterfall. At the end of the tenure, any investments not yet sold must be dealt with: - sale before the fund ends; - an extension of tenure, with investors' approval; - distribution in kind (in specie): giving investors the unsold securities instead of cash, subject to SEBI's rules and investor consent; - moving remaining assets into a continuation vehicle or a liquidation scheme, as SEBI's rules allow.