Governance - Co-Investments

There are many reasons why co-investments can be a good option including enhancing the fund’s strategic position, scalable overflow of “best ideas” positions or housing illiquid investments. When managers grant co-investment rights to investors, there needs to be processes in place to address governance and compliance challenges.

In this memo we discuss:

• The co-investment landscape in alternative investments,
• The key governance and compliance challenges and investor concerns,
• An illustrative co-investment process to address these challenges and concerns, and
• Considerations such as structuring, fees and expenses and investment risk disclosure.