What is co-investment & how does it work?

Co-investment’s primary objective is to enable individuals to access high-yield investment portfolios without incurring excessive fees associated with private equity funds. Additionally, co-investors gain ownership rights proportionate to their investment. Co-investment offers advantages to both investors and fund managers.

What is a co-invest vehicle?

The co-invest vehicle usually holds a single investment, although fund managers and investors can agree upon exceptions. Fund managers assume responsibility for both the main fund and the co-invest vehicle. To prevent conflicts, investments are bought and sold simultaneously and under the same terms for both entities.

Are co-investments a good investment?

Co-investments, typically alongside private equity managers, offer sophisticated institutional investors and high net-worth individuals the opportunity to gain faster and greater exposure to attractive assets but at better terms — thus providing the potential to achieve more attractive returns.