Co-investments

When investing in private equity (PE), general partners (GPs) are responsible for the investment decisions and the development of the portfolio companies. Limited partners (LPs) provide the necessary capital and pay it into a fund or limited partnership. This is the classic structure of private equity.

A co-investment is a particularly exclusive form of investment in which investors can directly invest in portfolio companies in addition to the PE fund or limited partnership. As a rule, co-investments are reserved for selected high-net-worth individuals with a corresponding relevant network. Co-investments offer more favourable conditions for access to the portfolio companies, for example they do not pay the management costs and need to give up part of the profit as in the limited partnership.

Co-investments make it possible to invest in private equity on an equal footing with other major professional investors and with the expertise of renowned private equity companies. They therefore represent an attractive and increasingly relevant form of investment alongside the traditional limited partnership.

With the help of ELTIFs, investors with smaller assets can now also gain access to co-investments. Learn more about ELTIFs in the Scalable Broker.