This is a lawsuit essentially saying, “PE Manager is selling an investment in Fund 1 to its Fund 2 at a discounted value and thus screwing investors in Fund 1.”

We don’t know the “truth.” But it sure is surprising that the tens of billions of dollars raised in Fund 2 Continuation Funds aren’t facing the same issues of a near impossible to reconcile conflict of interest here.

And who is passively accepting the assurances of the sponsors that all is well?