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The LP Distress Index

What Venture Capital's Continuation Fund Boom is Actually Measuring

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This analysis is part of Venture Capital 2.0’s continuing research on capital structure, governance, and post-power-law venture design.

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The LP Distress Index

Is the venture continuation-fund market growing? Fast. It has grown sixfold or more in two years. But a growing CV market is not a sign that venture liquidity is being solved. It is the clearest real-time gauge we have of how much pain limited partners are in. In my latest research I show how the size of the venture continuation market is a thermometer for LP distress, and right now it is running hot.

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