New study exposes shortcomings of co-investment portfolios
A new study by Altius Associates reveals that co-investment programmes have a substantial risk of generating poor returns, even with a reasonably sized co-investment portfolio. Altius’ study uses a sample of 886 realised US buyout and growth investments ranging from 1979 to 2010 and shows that with a co-investment portfolio comprising 10 assets there is a probability that the entire portfolio would generate an IRR below 0%.
1 April 2014•4 mins read
