Co-investment

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1. Private equity - minority investment.

A minority private equity investment, usually made alongside a financial sponsor that takes the leading role in the total investment.


2. Private equity - minority investment.

A minority private equity investment, that results from the exercise of co-investment rights.

The party granted, and exercising, co-investment rights would be a limited partner in a private equity fund.

Following exercise of the co-investment rights, the limited partner then has two separate stakes in the investee company: (a) Through the private equity fund; and (b) Directly.

Offering co-investment rights is a way that some private equity funds encourage limited partners to invest into their funds.


See also