Co-Investment
A co-investment is a direct investment made alongside a fund manager (general partner) into a specific portfolio company, typically on more favourable economics than the fund's standard fee structure. Co-investments allow family offices to concentrate capital into highest-conviction opportunities while preserving the diligence and operational support of the GP.
Co-investment rights are negotiated as part of a fund commitment and vary widely. Anchor LPs, large-cheque LPs, and strategic LPs typically receive priority co-investment offers. The economics are usually fee-light: reduced or zero management fee, reduced or zero carried interest, in exchange for committed capital and timely decision-making.
Co-investment is increasingly the practical middle path between full direct investing (which demands operational capability most offices lack) and pure fund allocation (which dilutes returns through layered fees).
Deeper reading
Mousse Partners: how the Wertheimers structure Chanel's dynasty
Mousse Partners, the Wertheimer family's single-family office, manages one of the world's most consequential private fortunes. Its structure offers transferable lessons in governance, diversification, and dynastic ownership discipline.
Iconiq Capital: managing $65bn for the tech elite and the boundary between MFO and SFO
Iconiq Capital manages $65bn for Zuckerberg, Dorsey, and dozens of tech founders. Its evolution from multi-family office to venture investor reveals the opportunities and conflicts inherent in shared-services models.
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Jeff Bezos's 2019 divorce transferred $38.3 billion in Amazon shares to MacKenzie Scott, exposing structural lessons on principal separation, venture allocation, and philanthropic vehicle design for ultra-high-net-worth families.
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