A systematic process—or technology infrastructure—enabling LPs to participate in direct investments alongside a GP's fund, typically on preferential fee terms and with streamlined deal flow access.

A value capture and relationship signal—co-investment platforms allow allocators to increase exposure to high-conviction deals, reduce blended fees, and build operating partnership with GPs, while indicating systematic deal flow strength.

Expanded Definition

A co-investment platform formalizes how GPs offer LPs the ability to invest directly in portfolio companies alongside the main fund. Rather than ad-hoc invitations, platforms provide structured access through defined eligibility criteria, deal flow cadence, and participation terms.

Platform components: Deal sharing (systematic communication of co-invest opportunities via portal or dedicated LP channel), standardized terms (reduced or zero fees/carry, minimum check sizes, decision timelines), eligibility framework (which LPs get access—anchor investors, strategic partners, largest commitments), and technology layer (digital portals for deal materials, diligence access, commitment management). Strong platforms demonstrate GP confidence in deal flow quality and create fee-efficient exposure for LPs.

Signals & Evidence

Co-investment platform quality indicators:

Deal volume: Regular opportunities (4-8 deals/year signals strong pipeline)
Fee structure: Zero fees, 0-10% carry (better than fund economics)
LP participation: High take-up rates (30-50%+ of eligible LPs participating)
Historical performance: Co-invest track record matching or exceeding fund performance
Access criteria: Transparent eligibility (commitment size, strategic value, operational support)

Decision Framework

Platform access: Does LP qualify for co-invest rights based on commitment size or strategic value?
Resource capacity: Can LP evaluate deals on tight timelines (often 2-4 weeks)?
Portfolio fit: Do co-invests align with LP's sector focus and sizing preferences?

Common Misconceptions

"Co-invests = adverse selection" → GPs offer co-invests to share capital needs on large deals or reward LP relationships, not just to offload risk. "All LPs get access" → Platforms typically reserve access for anchor investors, strategic partners, or largest commitments. "Co-invests reduce fund returns" → GPs still retain meaningful economics; co-invests address capital constraints and LP relationship building.

Key Takeaways

Co-investment platforms provide systematic, preferential-fee access for LPs to invest directly alongside GP funds
Strong platforms signal deal flow quality, GP confidence, and relationship depth with key LPs
Platform access typically reserved for anchor investors or strategic partners with capacity for rapid diligence

Co-Investment Platform