Parthenon Seeks to Maintain Ownership of KBRA via $1.7 Billion Continuation Fund

Parthenon Capital Partners is pursuing a secondary transaction to extend its ownership of Kroll Bond Rating Agency (KBRA), a critical asset in its portfolio. The firm is launching a single-asset continuation fund to raise up to $1.7 billion, with $800 million to $900 million in new capital expected according to Bloomberg. Lazard Inc. is acting as the advisor for the deal according to Bloomberg.

The continuation fund is part of a broader trend among private equity managers to retain control of high-value assets. Parthenon joins firms like Centerbridge Partners and New Mountain Capital in leveraging such vehicles according to Bloomberg. In the first half of 2025, single-asset continuation funds accounted for 42% of all such transactions, according to Jefferies Financial Group.

Parthenon's fund will likely offer a significant share of carried interest to investors. This structure is designed to attract a wide pool of investors, as individual commitments will be limited according to Bloomberg.

Why Did Parthenon Pursue This Strategy?

Parthenon acquired a controlling stake in KBRA in 2021, making it a central part of its portfolio. KBRA provides credit grades for various sectors in the US and Europe according to Bloomberg. Since 2010, the firm has issued more than 87,000 ratings across $4.19 trillion of deals according to Bloomberg.

The continuation fund allows Parthenon to maintain its strategic control over the agency while offering liquidity to some investors. This approach avoids the need to fully divest or spin off the asset according to Bloomberg.

How Might This Affect the Fundraising Process?

The final amount raised will depend on how many existing investors decide to cash out according to Bloomberg. Parthenon may need to adjust terms during negotiations to secure commitments according to Bloomberg.

The limited individual investment caps suggest Parthenon is targeting a broad investor base. This contrasts with traditional private equity fundraising, which often relies on a smaller number of large investors according to Bloomberg.

What Are Analysts Watching Next?

Single-asset continuation funds are becoming more common among mid-market private equity firms. This trend reflects a desire to retain control of valuable assets while offering liquidity to some stakeholders according to Bloomberg.

The structure of Parthenon's fund could influence how other firms approach similar transactions. Analysts will watch whether this model proves attractive to both sellers and investors according to Bloomberg.

KBRA's performance and market position will also be key indicators of the fund's success. Its role in credit grading across the US and Europe positions it as a strategic asset in the financial sector according to Bloomberg.