Chart of the Week: Demand for co-investment vehicles increasing

 LPs are finding co-investments more attractive



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Private Equity International's fundraising numbers revealed that during the first half of 2014, $2.64 billion has been raised from six co-investment vehicles.

Since the third quarter of 2011, fundraising for co-investment vehicles has been volatile, but has had a seven fold increase during the period. In 2011, Blackstone Capital Partners V Co-Investment Fund was the largest co-investment closing at $2.92 billion.

As part of the results of our Q2 fundraising numbers Dan Gunner, Director of Research & Analytics stated that:

“Another significant trend has been towards investors seeking greater control over their investments and so a higher proportion of money going to co-investment opportunities”.

North Carolina State Treasury stated in their investment review that co-investment funds are attractive due to the reduced fees and carried interest to give to GPs. The treasury also stated that it prefers less blind-pool risk and regularly sees deal flow from existing managers.