China's subdued IPO market forces Asian PEs to sell assets to continuation funds

China's subdued IPO market forces Asian PEs to sell assets to continuation funds

FILE PHOTO: A security guard stands at the Shanghai Stock Exchange building at the Pudong financial district in Shanghai, China, February 3, 2020. REUTERS/Aly Song/File Photo

The subdued market for initial public offerings in Asia is prodding private equity investors in the region to pursue a controversial strategy for exiting investments: selling assets to so-called “continuation funds” they raise themselves.

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