Investing in private equity via co-investment

Investment in private equity is carried out mainly through funds managed by management companies.

These management companies have the task of selecting and identifying the companies in which the capital is provided and supporting them in their growth by providing them of course with capital, but also with their skills and their network.

They can implement different strategies: primary, secondary or co-investment, which we will detail now.

Invest in private equity via co-investment.

There are three main ones: The first, great diversification: thanks to the partnership with several managers, the co-investment fund will be able to access a wide range of companies in terms of size, sectors and geographical areas.

The portfolio will therefore be made up of more companies than a traditional private equity fund.

The second, enhanced due diligence: in addition to the study of each investment made by the sponsor fund, the co-investment fund will carry out a double analysis.

The sponsor to assess its ability to carry out the value creation strategy and the target company to assess its growth prospects.

The third, a lower cost structure due to their pooling between the parties.