co-invest

“You know, there's negative selection bias in any of those deals that you can actually get into unless you can really explain it. So I think that as an LP, what you should really be doing is take that as a indicator of their network and who they know and who th…”

“And what they found out is that when you did co-invest with the managers we like, if you did it in their sweet spot, the sweet spot being either sector or industry expertise or size deal, that co-invest worked out very well. When you did the co-invest outside …”

“It's famous that asset owners have eyes that are bigger than their stomachs when it comes to co-invest. They just can't move at the pace that these deals move and get things done in two weeks.”

“We bring a lot of co-invest into our deals today because what we're really trying to do is perfect the art of doing the types of deals that we do. And regardless of the size of our fund at a given time, what we want to do are a handful every year of great deal…”

“So they're kind of forced into what is perhaps an unnatural part of their cap space because they, they'd love to spend the 500 in coinvest. And that coinvest that I'm subsidizing and is being a distraction to, and perhaps dragging that Five hundred million GP …”

“Because of that, I'm not real thrilled when our GPs will raise five hundred million and then raise five hundred million worth of opportunity for direct co-invest. And my pushback on that is, well, so I'm really just subsidizing the other guy who's taking the c…”

“Three years ago, on any deal, there were a 150 people that said they wanted to do a co-invest on that deal. Maybe 50 of them actually ended up answering the phone and doing it, and now it's down to 10, eight, 12. It has very, very significantly shrunk the univ…”

“We construct our co-invest as organic parts of a SMA, meaning the co-invest performance is netted and pulled together with the fund performance in determining our net performance, something different from industry practice.”

“15% private equity, nine percent private credit, six percent private real assets. Within that, for the private equity and the private real assets, 50% primaries, 30% secondaries, 20% co-invest.”

“Depending upon the GP, there are some GPs whose Dollar of fees per dollar of AUM have gone down by 50% over the last decade because of co-invest.”

“The more co-invest you do, though, the harder the model gets, because you have to assume a sale of that co-invest, and it removes itself completely, unlike a private equity fund where you're calling down over time and you're distributing over time.”

“We back a lot of these emerging managers. I can tell you they are inundated with offers from folks who are saying, I'll give you a hundred million for your fund one, and I want one to one co-invest. What those folks are really saying is I want half off the rac…”

“In many cases, if you'd step back and say, the typical buyout fund has 10 investments in it. If it produces a median return, it's likely that there was a bell curve distribution of deals. We're fine. If it produces an outlier return, it's likely that one deal …”