Fund Structure
Co-Investment
Direct investment by an LP alongside a VC fund in a specific portfolio company — often offered as a perk to large LPs.
Co-investment allows LPs to invest directly in individual portfolio companies alongside the main fund, usually with reduced or zero fees and carry. For LPs, co-investment offers: direct exposure to specific companies they're most excited about, lower effective fee loads (since fees/carry are waived or reduced), and higher potential returns on concentrated positions. For GPs, co-investment offers: ability to do larger deals without straining fund concentration limits, a way to reward top LPs, and relationship building with valuable capital sources. Co-investment rights are a negotiating point — large LPs often receive pro-rata co-investment rights as a condition of their commitments. The co-investment market has grown significantly, with dedicated co-investment funds and platforms emerging.