Co-Investment Evolves From Fee Break to Strategic Capital Solution

The featured roundtable highlights how co-investment has shifted from opportunistic fee savings to a core execution tool for GPs and disciplined alpha source for LPs 

• Co-invest volumes have outpaced broader M&A, with ~62% now occurring pre-signing, reflecting rising co-underwriting and demand for deal certainty.

• “No fee, no carry” remains standard, with <7% of deals proposing economics—enhancing LP return potential while strengthening GP relationships.

• Surveys show 61% of co-investments outperform parent funds on net TVPI, and 75% on loss ratios, though execution speed and portfolio discipline are critical.

Is co-investment now junior capital in disguise—or the most efficient route to private equity alpha? The discussion explores the trade-offs.