Why you must underwrite CVs like buyouts

What if the most compelling private equity opportunities aren’t brand-new deals, but the ones other investors have already “vetted” and are leaving on the table? In this episode, I sit down with Michael Woolhouse, Head of Continuation Vehicles at TPG Capital, to explore how he approaches the rapidly growing single asset continuation vehicle (CV) market—a space where sponsors can roll their most successful companies into new structures, creating liquidity while maintaining upside potential.

Highlights:

• Why approaching continuation vehicles like a private equity buyout is critical
• How positive selection bias and prior ownership reduce risk in CV deals
• Why general partners often roll 100% of proceeds back into continuation vehicles
• The outsized GP commitments that align incentives and maximize upside
• How CV economics, including tiered carry and lower management fees, structure risk and reward
• The discipline of staying in the “fairway” and avoiding the siren call of fringe deals
• Why being a partner in CVs requires both trust and transparency with existing LPs
• How single asset CVs offer higher returns with lower realized losses compared to traditional buyouts
• The growth trajectory of the CV market from $30B in 2024 to record volumes in 2025
• Lessons on building an entrepreneurial, apprenticeship-driven culture within a large firm
• The importance of acting quickly, learning from mistakes, and giving junior investors real exposure

Guest Bio:

Michael Woolhouse is Head of Continuation Vehicles at TPG Capital, where he leads investments in single-asset continuation vehicles focused on long-term upside. Previously, he held leadership roles at Canada Pension Plan Investment Board, developing secondary market and portfolio construction strategies while emphasizing disciplined underwriting and strong investor alignment.

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Sponsor:

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Disclaimer:

This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Capital. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions.

(0:00) Why Great Companies End Up in Continuation Vehicles (1:04) Avoiding Adverse Selection in CV Deals (2:15) Why CV Investors Underwrite Like Buyout Firms (4:36) The Unique Skills Needed in the Secondaries Market (8:05) The Incentive Conflicts Between GPs and LPs (11:07) Why Most LPs Sell Instead of Rolling Their Stakes (13:46) What Returns Investors Expect From CV Deals (17:12) Why Continuation Vehicles Can Be Lower Risk (21:44) Why GPs Actually Want to Do CV Deals (30:33) The Investment Discipline That Prevents Costly Mistakes