Direct Investment
Direct investment is allocating capital directly into a company or asset without using a pooled fund structure.
Definition
Direct investments bypass fund intermediaries and provide allocators greater control over exposure, timing, and governance rights. Allocator Context Common in family offices and larger institutions with internal teams. Often used to reduce fees, increase control, or target specific sectors. Decision Authority Requires stronger internal diligence capacity; approvals can be principal-led (family offices) or committee-led (institutions). Why It Matters for Fundraising Founders and managers targeting direct investors must align with decision dynamics and demonstrate clear underwriting logic and governance comfort. Key Takeaways More control, more responsibility Requires diligence capacity Governance rights matter Speed varies by allocator type