The back office, built for founders

Every handles the operational grind — from incorporation to banking, payroll, and compliance — so you can focus on what matters most: building your company.

Start by incorporating your company for free, then access tools that grow with you. No busywork. No guesswork. Just a clear path forward.

Get started today.

With this year's growing usage of continuation funds (now 20% of all exits through the first half of 2025), there's been a corresponding jump in the usage of fund financing options tailored to these vehicles.

One of the more popular is the subscription line of credit, or using unfunded LP commitments as collateral to delay the initial funding of the continuation fund. Like a subscription line used on a standard fund to delay capital calls, the CV variant allows sponsors to defer capital calls at closing while still paying LPs who exit from the original investment.

In continuation fund processes, banks are generally willing to lend 20 to 25 percent of value at a cost of about 3 percentage points over benchmarks.

This can lift reported IRRs for buyers by more than 2.5 percentage points in some cases, reducing the amount of time LP capital is deployed to generate an equivalent cash-on-cash return (less the financing cost).

Despite the potential benefit, subscription facilities may not be particularly well-suited to continuation funds.

The majority of original investors often choose to redeem when given the option and those that don’t may not be willing to extend further capital. As a result, there tends to be a smaller and less diversified pool of investors with uncalled capital commitments to lend against.

Even with new investors coming in, the different composition of those investors can be a drag on available terms.

For lenders arranging the facility, underwriting focuses on the quality and concentration of the investor base: With a more varied group of secondaries investors, it's a different type of risk profile to manage than the original fund (typically highly creditworthy entities like pension funds).

Those characteristics mean a higher cost of debt than standard lines. In some cases, higher interest rates have pushed costs above hurdle rates, which can lead to tougher negotiations on fund terms and governance protections.

One alternative is a hybrid approach, blending elements of a subscription line with a NAV financing (collateralized by the underlying asset).

On its own, a NAV financing for a continuation fund runs into a key challenge — instead of the usual portfolio of underlying assets, there's only one asset or a very small number of them.

The combination of a NAV loan with a subscription line, however, helps on both fronts...

"Where standalone subscription-only underwriting is constrained by a concentrated, often unrated secondaries LP base, and pure NAV-only underwriting is constrained by a limited number of assets, blended facilities have gained traction," writes Investec.

"Pricing is generally above traditional subscription lines but cheaper than pure asset-based leverage, with advance rates supported by both the uncalled commitments and the asset base."

While that sounds like the best of both worlds, complexity does have a limit. With so many moving parts, hybrid facilities tend to be custom and heavily negotiated, without the benefit of market standard terms.

"Thus, while a subscription facility can often be negotiated and closed quickly, a hybrid facility often involves lengthy negotiations in which the facility risks not being in place in time for the ‘first closing’ (when the capital call aspect of the facility is most valuable)," explains a Latham & Watkins report.

That said, it might be a trend worth watching — could growing demand for continuation fund financing solutions lead to a maturation in hybrid offerings?

• Advent International agreed to acquire PatientPoint, a digital health marketing and engagement company with a network of 125,000 providers, from L Catterton, Littlejohn & Co., and Transformation Capital.

• Keurig Dr Pepper (Nasdaq: KDP) agreed to acquire JDE Peet's (Amsterdam: JDEP), parent company of Peet's Coffee, for around $18 billion in cash, with plans to subsequently split into two independent, publicly traded companies focused on coffee and soft drinks, respectively.

• Cenovus Energy (NYSE: CVE) agreed to acquire MEG Energy (TSX: MEG), a Canadian oil sands firm, for C$7.9 billion including debt.

• Terumo Corporation agreed to acquire OrganOx Limited, a UK-based organ transplantation technology company spun out from Oxford University, for $1.5 billion.

• Crescent Energy (NYSE: CRGY) agreed to acquire Vital Energy (NYSE: VTLE), a Permian Basin-focused oil and gas producer, for $733 million in stock, representing a total enterprise value of $3.1 billion.

• Air Liquide agreed to acquire DIG Airgas, South Korea's third-largest industrial gas supplier, for around $2.9 billion from Macquarie Asset Management.

• TPG is exploring the sale of XCL Education, a Singapore-based school operator, in a deal that could fetch up to $1.5 billion, per Bloomberg.

• AbbVie (NYSE: ABBV) agreed to acquire bretisilocin, a novel psychedelic compound in Phase 2 development for major depressive disorder, from Gilgamesh Pharmaceuticals for up to $1.2 billion, inclusive of development milestones.

• Peak Rock Capital acquired Aegis Software, a Pennsylvania-based provider of manufacturing execution system software.

• The Weeknd is in talks to raise around $1 billion backed by his music rights catalog, with Lyric Capital Group among potential investors, per Bloomberg.

• FalconPoint Partners acquired SMS, a provider of outsourced steel mill services and marine vessel decommissioning, from Scrap Metal Services LLC.

• MannKind (Nasdaq: MNKD) agreed to acquire scPharmaceuticals (Nasdaq: SCPH), a cardiorenal drugmaker, for upwards of $360 million.

• Halma (LSE: HLMA) acquired Brownline, a Dutch provider of gyroscopic locating systems, from Mentha Capital and MaasInvest for £129 million.

• Hartree Partners is in exclusive talks to acquire Touton SA, a Bordeaux-based cocoa and coffee trader that handles nearly 10% of the world's cocoa.

• Providence Equity Partners acquired a majority stake in Modern Campus, a Toronto-based learner-to-earner lifecycle platform for higher education.

• NexPhase Capital invested in Magic Science Corporation, a manufacturer of hypochlorous acid-based skincare products sold under the Magic Molecule brand.

• Bain Capital Insurance invested in Crestwell Underwriters, a newly-formed Florida property insurance-focused managing general agent offering admitted, property-only insurance for condominium associations.

• Closed Loop Partners acquired Agri-Cycle, a Valley Park, Missouri-based provider of organics waste management services for commercial and industrial customers.

• Fruition Partners acquired The Memory Company, a Phenix City, Alabama-based producer and licensee of sports and consumer-branded merchandise.

• Centerfield, a portfolio company of Platinum Equity, acquired ConsumerVoice, a digital commerce platform that helps companies find in-market shoppers.

• August Equity invested in Higgs LLP, a British law firm.

• GIC is considering an investment in data center assets owned by Goodman Group (ASX: GMG), per the Australian Financial Review.

• Tapco, a Milwaukee-based portfolio company of Peak Rock Capital, acquired Logix ITS, a Canadian provider of connected traffic solutions.

• Ondex Automation, a portfolio company of Shore Capital Partners, acquired Vision and Control Systems, a factory automation systems integrator.

• Rochester Midland, a portfolio company of Peak Rock Capital, acquired Decon Water Technologies, a Phoenix-based water treatment services provider.

Tech, Vertical SaaS, & Misc. Enterprise

• Ontic, an Austin-based security intelligence platform, raised $230 million in Series C funding led by KKR, with participation from JMI Equity, Silverton Partners, Ridge Ventures, and Ten Eleven Ventures.

• Aurasell, an AI-native CRM platform that streamlines sales workflows, raised $30 million in seed funding led by Next47, with participation from Menlo Ventures and Unusual Ventures.

• Boost My School, a fundraising platform for K-12 schools, raised $10 million in Series A funding led by High Alpha, with participation from Far Out VC, ground game, and Allos Ventures.

• Irys, a datachain platform for data monetization, raised $10 million in Series A funding led by CoinFund, with participation from Hypersphere, Tykhe Ventures, Varrock Ventures, Breed VC, Echo Group, Amber Group, and WAGMI Ventures.

• Verdata, a risk data and analytics provider, raised $8 million in Series A funding led by Continental Investors, with participation from 1st & Main Growth Partners, Front Porch Venture Partners, and Overline Venture Capital.

• Sequifi, a platform for home service companies that manages payroll and commissions in real-time, raised $6.7 million in seed funding led by Cervin Ventures, with participation from Frazier Group and Tokyo Black.

Fintech

• Holo, a UAE-based digital mortgage platform, raised $22 million in Series A funding led by Saudi Arabia's Impact46, with participation from Mubadala Investment Company, Rua Growth Fund, anb seed, MoreThan Capital, Salica Oryx Fund, and Dubai Future District Fund.

Healthcare

• Restor3d, a 3D-printed orthopedic implant company, raised $104 million in Series B funding from Partners Group, which acquired a significant minority stake contributing $65 million, with participation from existing shareholders.

• ProVerum, a Dublin-based developer of minimally invasive prostate treatments, raised $80 million in Series B funding led by MVM Partners, with participation from OrbiMed, Ireland Strategic Investment Fund, Gilde Healthcare Partners, Lightstone Ventures, Atlantic Bridge, and Enterprise Ireland.

• Arnatar Therapeutics, a San Diego-based RNA therapeutics developer for rare diseases, raised $52 million in Series A funding co-led by Eight Roads and 3E Bioventures, with participation from F-Prime Capital, Zhuhai Huajin Capital, Legend Star, Transfar Capital, New Alliance Capital, Yijing Capital, Gaorong Ventures, Jifeng Ventures, and Hongsheng Capital.

• Vaxxas, a Brisbane-based needle-free vaccine delivery technology developer, raised A$49.2 million in Series D funding led by SPRIM Global Investments, with participation from LGT Crestone, OneVentures, and Brandon Capital-Hostplus.

• Wellth, a digital health platform using behavioral incentives to improve health outcomes, raised $36 million in Series C funding led by Mercato Partners, with participation from FCA Venture Partners, Comcast Ventures, SignalFire, NY Life, and CD-Venture.

• Eyebot, a company offering 90-second vision test kiosks for doctor-verified glasses prescriptions, raised $20 million in Series A funding led by General Catalyst, with participation from AlleyCorp, Baukunst, Village Global, and Ubiquity Ventures.

• Nest Health, an in-home healthcare provider for Medicaid families, raised $12.5 million in Series A funding co-led by 8VC and Blue Venture Fund, with participation from Amboy Street Ventures, Alumni Ventures, and Health 2047.

• Barti Software, an EHR and practice management platform for eye care practices, raised $12 million in Series A funding led by Five Elms Capital, with participation from AOAExcel.

• Incyclix Bio, a Research Triangle Park-based company developing cancer treatments targeting cell cycle control, raised $11.25 million in Series B extension funding from Eshelman Ventures, Eli Lilly, Pharmacosmos, and Cape Fear BioCapital.

Industrials, Greentech, & Other

• Stark, a German defense tech company specializing in weaponized drones, raised $62 million in Series B funding led by Sequoia Capital at a $500 million valuation, with participation from 8VC, Thiel Capital, NATO Innovation Fund, In-Q-Tel, Project A, and Döpfner Capital.

• Paragraf, a developer of graphene-based electronics using semiconductor processes, raised $55 million in Series C funding led by Mubadala, with participation from Amadeus Capital Partners, British Patient Capital, Cambridge University, IQ Capital, IQTI, Martlet Capital, Molten, New Science Ventures, Openfield Capital, and Parkwalk Advisors.

• Blue Water Autonomy, a Boston-based developer of autonomous unmanned ships for naval defense, raised $50 million in Series A funding led by GV, with participation from Eclipse, Riot, and Impatient Ventures.

• Splight, a grid technology company using machine learning to optimize congested electric grids, raised $12.4 million in SAFE funding led by Blue Bear Capital, with participation from ZOMA Capital.

• ICEYE, a Finnish-Polish Earth observation satellite manufacturer and operator, raised $11 million (PLN 40 million) in new funding from Vinci S.A., an investment vehicle of Bank Gospodarstwa Krajowego, Poland's National Development Bank.

• OSW, an Australian solar wholesaler and distributor, raised $5.5 million in Series A funding from SparkEdge Capital to fuel international expansion into the US, Mexico, Spain, and Romania, and accelerate the rollout of its GreenSketch technology platform.

• Blue Owl Capital is raising around $1.5 billion for a continuation
fund that would purchase a portfolio of GP stakes—including HPS Investment
Partners, Clearlake Capital Group, and Golub Capital—from its fourth Dyal Capital Partners fund.

• Haven Capital Partners, a newly launched New York-based investment firm focused on tech services, healthcare, and education, raised $375 million for its debut fund.

• Union Park Capital, an industrial technology-focused private equity firm, is raising $350 million for its fourth fund, per an SEC filing.

Interested in partnering with Transacted? If you’re a financial services firm looking to connect with an engaged audience, please reach out.