Avoiding the pitfalls of co-investment

By Elizabeth Pfeuti​ - Co-investments remain a theme in 2019, as both GPs and LPs increasingly see value in separate partnerships alongside commingled funds.

Earlier this year, the listed Standard Life Private Equity Trust announced it would allocate up to 20 per cent of its net asset value to these partnerships, kicking off with a stake in Midlands-based Mademoiselle Desserts alongside Europe-focused IK Investment Partners. 

Institutional investors, too, such as pension and sovereign wealth funds, are getting in on the act. Some of the largest public pensions in the US, including the Teacher Retirement System of Texas, which announced this year it was raising its co-investment target and staffing level, have been attracted to the method. 

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