Making investments in private equity through co-investment.

Private equity investment is mostly done through funds managed by investment companies.

The task of management companies is to identify and select companies that receive capital and support them. Their growth is facilitated by giving them both capital and their skills and network.

Primary, secondary, or co-investment strategies are all available for implementation, which we will detail now.

Co-investment can be used to invest in private equity.

The co-investment fund can access companies of different sizes through the partnership with several managers, which represents the first major diversification available.

Consequently, the portfolio will contain a greater number of companies than a traditional private equity fund.

The enhanced due diligence will involve both the co-investment fund conducting a double analysis and the sponsor fund studying each investment.

The sponsor's ability to implement the value creation strategy should be evaluated, while the target company's growth prospects should be evaluated.

The third option's cost structure is lower because they are pooled between the parties.