Co-investments allow limited partners of private equity funds to make direct investments into companies alongside the fund sponsors, and are typically minority positions. As a prominent, long-term investor in private equity funds, Portfolio Advisors frequently has the opportunity to make these direct investments in private equity transactions on a no-fee, no-carry basis, with high-quality fund sponsors. The popularity of co-investments has increased significantly in recent years due to the meaningful benefits for both private equity sponsors and their limited partners.

Benefits of Co-Investments

Sponsors have utilized co-investments as a strategic tool to access additional limited partner capital and to build or strengthen relationships with both new and existing investors. Portfolio Advisors can benefit from the following:

  • Direct access to private equity transactions alongside fund sponsors at potentially reduced economics
  • Investment opportunities derived from a set of sponsor relationships that we have vetted and cultivated over time
  • Well diversified exposure to preferred industries, vintage years, geography and sponsors
  • Compelling risk/return profile

Our Approach

We generally invest directly into profitable middle-market companies in the U.S. alongside general partners with whom we typically have longstanding relationships. Key characteristics of our approach include the following:

  • Leveraging our Platform: We source a wide range of co-investment opportunities from our primary relationships with more than 300 general partners.
  • Focusing on Lead Sponsors’ Strengths: We seek to eliminate two layers of risk in direct investing, by focusing on co-investment opportunities from top-tier sponsors we have vetted on a primary basis, and focusing on their core areas of expertise.
  • Constructing Diversified Portfolios: We seek to create a portfolio well diversified by industry, vintage year, geography and sponsors, which provides additional downside protection.
  • Dedicated Team: Our team is focused exclusively on co-investments, has significant experience in sourcing and executing deals, and has built an established track record since 2008.
  • Middle-Market Emphasis: Our program leverages the firm’s strength in the middle market as a provider of primary fund commitments and direct credit financing (senior and junior debt) for transactions. Middle-market opportunities generally provide greater access to company management teams, and middle-market companies enjoy numerous growth levers in the areas of organic expansion, accretive consolidation opportunities and operating efficiency enhancements.

Senior Members of the Co-Investment Team

Adam Clemens
Managing Director
Coinvestment Equity
Benjamin Hur
Managing Director
Michael Chen
Senior Vice President