Getting into the private equity game through co-investment is a smart move. When it comes to private equity, the action happens mostly via funds managed by specialized companies.
These folks have the job of spotting and picking the companies to put money into. They're not just throwing cash around – they're in it for the long haul, offering not only money but also their expertise and connections to help these companies grow.
They've got a few strategies up their sleeves: primary, secondary, and co-investment. Let's dive into what co-investment is all about.
Dive into the world of private equity through co-investment.
Here's the scoop on the three big perks:
Super Diversification: By partnering with different managers, the co-investment fund opens the door to a wide array of companies – spanning sizes, sectors, and global regions. Translation: a beefed-up portfolio compared to the traditional private equity route.
Double-Check Due Diligence: Think of it as due diligence on steroids. Besides the sponsor fund's investigation, the co-investment fund does its own deep dive. They assess the sponsor's knack for adding value and evaluate the target company's growth potential.
Smart Savings: When everyone chips in, costs go down. The co-investment setup is a wallet-friendly option, thanks to the financial synergy between all parties involved.
3
2
1
