Australian VCs are eyeing continuation vehicles as the local market matures
Continuation funds, which allow VCs to transfer portfolio companies that have not yet exited into new vehicles are growing in popularity as companies stay private for longer.
New Zealand has a dedicated one, Silicon Valley is seeing more of them, and Europe is experiencing a surge of them.
Now, Australian venture capital firms are increasingly warming to continuation funds as the local market matures and high-quality assets demand longer investment horizons.
Continuation funds allow venture capital managers to transfer select portfolio companies into new vehicles, providing liquidity options for existing investors while enabling others to maintain exposure to high-performing assets that may remain private beyond traditional fund timeframes.
Michelle Deaker, founding partner and managing partner at OneVentures, said continuation vehicles were "playing a bigger role in how venture investors manage liquidity and long-term value" and were "gaining relevance in Australia" despite not being new globally.
