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Co-investment

Direct investment alongside a fund into a specific deal, usually with reduced or no fees. Frequently the term family offices value most.

Co-investment — Direct investment alongside a fund into a specific deal, usually with reduced or no fees. Frequently the term family offices value most.

Co-investment rights range from vague 'best efforts' language to specific pro-rata or priority rights — the difference matters enormously, and investors should read the actual clause rather than assume a general mention of co-investment in marketing materials reflects a binding commitment.

Frequently asked questions

Is co-investment always fee-free?

Typically offered with reduced or no management fee and carry, though managers should check whether transaction fees charged to the underlying company reintroduce some economics.

Do all LPs get equal co-investment access?

No — rights are usually tiered, with anchor investors or larger commitments often receiving priority access ahead of smaller LPs.

Nothing on this page is legal, tax, or investment advice. SeRuM is not a registered broker-dealer, not a placement agent, and not an investment adviser.

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