Fund Structure
What is Co-Investment?
A co-investment is a direct investment an LP makes into a specific deal alongside a fund, usually with reduced or no fees. Co-investments let LPs increase exposure to chosen deals and lower their blended cost.
Co-investment rights let an LP invest directly into a particular portfolio company alongside the GP, on top of its main fund commitment. GPs offer co-invest to LPs to fill out larger deals and to reward important investors; LPs value it for fee savings and deal selection.
Co-investing has become a major reason large LPs build in-house investment teams.
Also known as: co-invest, co-investing