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CPPIB has anchored a vehicle managed by the Grant Behrman-led firm to house five portfolio companies. The companies will pay an exit fee used mostly to cash out existing LPs.
A recent fund restructuring on the secondary market illustrates how secondaries firms can help create options for LPs in funds well beyond their contractual lives. By Christopher Witkowsky
The restructuring, financed in part by an investor group that includes Landmark and Vision Capital, is seen as a way of providing options to LPs in a fund that has lived beyond its intended life.
The California Public Employees’ Retirement System’s Vista portfolio provides a stark example of the struggles LPs with mature portfolios have in managing out legacy funds.
Nearly 50 percent of investors are stuck with commitments to so-called ‘zombie funds’, according to Coller Capital's Winter Barometer.
Concern is increasing about struggling funds that will cling to life for as long as possible to keep collecting fees. LPs must get together to kill them off, writes Christopher Witkowsky.

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