Continuation Vehicle

New fund acquiring assets from older fund. A working definition from the RGM marketing glossary.

Schematic — Continuation Vehicle

New fund acquiring assets from older fund.

Term: Continuation Vehicle
Field: Private Equity
Category: Capital & Investing

A working definition

Keep this in mind.Continuation Vehicle means a capital concept. The value is in a shared, precise definition, not in knowing the word.

New fund acquiring assets from older fund.

In Capital & Investing, Continuation Vehicle names a capital concept. Pin the meaning down early and the strategy stays coherent.

How it works

Look at it this way.Continuation Vehicle works one way for a lean team and another for a large one. The mechanics follow the context.

Continuation Vehicle is not a switch you flip. It names a moving idea, and the way it plays out shifts with the setup. A lean team running one paid channel applies Continuation Vehicle differently than a brand running ten. Use Continuation Vehicle loosely and teams pull apart; pin it down and the math lines up.

One rule always holds. Settle the scope of Continuation Vehicle up front, then build the plan. Get it backwards and Continuation Vehicle becomes a word everyone uses and no one shares. Pick one definition.

Where it shows up

Pick one definition.Use Continuation Vehicle when it changes a choice. If it is not driving a decision, it is vocabulary, not leverage.

Bring Continuation Vehicle in when a live choice hangs on it. In capital & investing work, that usually means one of three moments. Away from a decision, Continuation Vehicle is background, not a lever.

Setting budget. Continuation Vehicle helps decide which channel gets the next dollar.
Choosing a metric. Continuation Vehicle reveals if the metric measures real impact.
Comparing options. Continuation Vehicle stops a tidy-looking comparison from misleading.

A concrete walk-through

Read that twice.To make Continuation Vehicle concrete, the case below uses a Series B marketplace and figures from public reporting plus RGM analysis.

Look at a Series B marketplace. In a CAC-to-LTV review, Continuation Vehicle drove the decision rather than sitting in a footnote. A baseline came first, then a single agreed meaning of Continuation Vehicle, then the read: runway extended after re-pricing a 3:1 segment.

Worked example for Continuation Vehicle -- illustrative figures, RGM analysis
Stage	What the team did	Why it mattered
Baseline	Read the starting point before any change to Continuation Vehicle.	A reference to judge against.
Define	Agreed a single definition of Continuation Vehicle.	No room for scope drift.
Act	A CAC-to-LTV review — one variable.	Cause and effect, isolated.
Result	Runway extended after re-pricing a 3:1 segment	A decision the data earned.

Figures for Continuation Vehicle here are illustrative and marked RGM analysis. Copy the method, not the exact numbers.

Failure modes to watch

One idea, plainly put.Teams slip on Continuation Vehicle in four familiar ways. Each makes a soft assumption look like a precise number.

No segments. Treating Continuation Vehicle as one number for all. Break it out before you trust it.
No anchor. Quoting Continuation Vehicle without a starting point. Always pair it with a baseline.
Vanity focus. Gaming Continuation Vehicle instead of the result. Tie it to business value.
Raw benchmarks. Stacking Continuation Vehicle against rivals blind. Normalize for margin, pricing, and sales cycle.

Quick answers

How is Continuation Vehicle defined?

New fund acquiring assets from older fund. Settle what Continuation Vehicle covers first; the strategy follows from there.

Why does Continuation Vehicle matter?

Continuation Vehicle earns its place when it shapes a real decision. The leverage is in correct use, not in the word itself.

How is Continuation Vehicle used in practice?

Teams put Continuation Vehicle to work on a spend split, a metric, or a head-to-head call. See the a Series B marketplace walk-through above.

What is the most common mistake with Continuation Vehicle?

Chasing Continuation Vehicle as a goal and benchmarking it raw. Both bury the real trade-off underneath.

How is Continuation Vehicle defined?: New fund acquiring assets from older fund. Settle what Continuation Vehicle covers first; the strategy follows from there.
Why does Continuation Vehicle matter?: Continuation Vehicle earns its place when it shapes a real decision. The leverage is in correct use, not in the word itself.
How is Continuation Vehicle used in practice?: Teams put Continuation Vehicle to work on a spend split, a metric, or a head-to-head call. See the a Series B marketplace walk-through above.