A recent Financial Times report highlights a critical conflict of interest in private equity: Triton Partners sold assets into a continuation fund for significantly more than the original valuation promised to limited partners (LPs). This practice, where firms sell assets to themselves, raises serious questions about valuation transparency and fiduciary duty. For investors, this signals a growing risk where fund managers may prioritize new fee-generating structures over fair market exits.

The article illustrates how internal dealing can obscure true asset value, potentially leaving early backers disadvantaged while the GP benefits from new management fees. This trend challenges the integrity of the secondary market and demands greater scrutiny from institutional investors regarding fund governance and valuation methodologies.