The future of co-investment

Global private equity deal value was down 51% year-on-year in the first six months of 2023, according to data from S&P. The volume of deals, meanwhile, dropped 39%. But the industry’s co-investment community is positive and in a recent roundtable, discussed the significant increase in demand for co-investment looking to preserve committed capital.

The combination of ‘tourist’ co-investors withdrawing from the market amid liquidity challenges and a significant increase in demand for co-investment from GPs looking to preserve committed capital – thereby making up the shortfall left by a decline in the availability of debt – means co-investments are as attractive as they have ever been. It’s a dynamic that was discussed in depth at Private Equity International's annual co-investment roundtable.

Jochen Mende, Head of Secondaries commented:

Timelines are proving prohibitive for most... Few LPs are organised to react as quickly as these situations require. It is not as easy as it looks.