The Co-Investment Practitioner: a Practical Career and Implementation Guide to Sourcing, Underwriting, Building Program in Private Markets

The deal doubles. Through the fund you keep 1.72x. As a no-fee co-investment you keep 2.00x. Same asset, same risk: the only question left is why the sponsor is showing it to you.Co-investment compresses the whole discipline of private investing, from sourcing and diligence to valuation, structuring and portfolio construction, into a window of days, with imperfect information and a counterparty who knows the asset far better than you do. This field guide teaches it as a repeatable practice you can build, staff, govern and improve, and it treats adverse selection as the recurring antagonist it is.Who this book is for- LP investment teams at pensions, insurers, endowments, funds of funds and family offices asked to build or run a co-investment effort- GP deal teams and investor relations professionals who syndicate equity and want to keep co-investors on the call list- Consultants, placement agents, lawyers and fund administrators who work on these deals- Analysts and students who want to break into private marketsWorked, not described- The fee drag on one ten-million check: 2.00x against 1.72x, or $2.8 million of retained value and more than three points of annual net return, for taking the identical risk.- The blended sleeve: $70 million through the fund and $30 million in co-investment lift the program from 1.72x to 1.804x net.- What it costs not to follow on: why dilution at a fairly priced round is value-neutral, how a pay-to-play clause moves the break-even exit from 600 to 250, and why the best reserve is 9.1 percent of the program under plain pro-rata documents but 13.0 percent under pay-to-play.Tools includedA co-investment diligence checklist, a sample process timeline, a glossary, interview questions with how to approach them, and return math worked cleanly. A companion workbook rebuilds every figure of the follow-on appendix, with twenty-four built-in controls; alongside it are a blank version for your own program, ten working documents to print, forty self-marking questions and three further cases. Nothing is locked; download details are inside the book.Contents in briefWhat co-investment really is; the ecosystem; the economics; why LPs co-invest and why some should not; designing a program; sourcing and deal flow; speed and execution; underwriting the deal; underwriting the sponsor; valuation, modeling and return bridges; structuring, terms and legal documentation; risk, concentration and portfolio construction; monitoring, exits and reporting; common mistakes; the co-investor's career.Part of The Private Markets Career Guides. Read next: The Private Markets Limited Partner, The Private Equity Secondaries Investor, The Family Office Professional.Educational content. All examples are fictional; not investment advice.