Asia private equity firms use controversial route to exit investments

HONG KONG -- 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.

Five continuation funds closed in Asia last year, the most in a year since 2010, according to data from Preqin, and dealmakers say interest in creating more of the vehicles is rising, particularly in China.