Co-investment has always had substantial appeal due to its ability for investors to dial up on potentially high-return investments made by private equity fund managers at relatively low cost. However, a dramatic increase in the supply of co-investment opportunities over the last five years has allowed for a substantial increase in the particular space. Since the beginning of 2009, over a fifth of all buyouts in the United States – the market that accounts for the lion’s share of private equity transactions – involved co-investment. Because of this, many excellent managers are offering significant co-investment opportunities for the first time. The greater number of opportunities has created a competitive fundraising market in which fund managers are increasingly forced to offer co-investors more attractive terms in order to secure capital. These new environmental factors have served to increase the general quality of co-investment ventures.
If you are an accredited investor interested in co-investing with Forest Hills Capital and want more information, contact us about qualifying to co-invest.