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By Wolfdieter SCHNEE, CAIA, VP Fund Solutions
Private equity (PE) has become increasingly important as an asset class in recent years. Investors and limited partners (LPs) are looking for new models to invest in private equity investments. As a result, minority investments that are made directly in an operating company alongside a private equity fund, so-called co-investments, are becoming increasingly popular.
Why co-investments?
Strong reasons for co-investments are the potentially superior risk/return profiles that investors can achieve through co-investments. This is not only due to the typically lower co-investment management fees for investing in the flagship fund, but also the ability to customise the...
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