Co-investments and fund commitments solve different problems. The best private-markets portfolios usually combine both.
Fees
Co-investments usually carry lower or no fund-level fees, just the deal-level economics. Funds layer 2 percent management fees and 20 percent carry on the blended pool.
Diversification
Funds give you 10 to 25 portfolio companies in a single commitment. Co-investments concentrate.
Transparency
Co-investments show you the company before you commit. Funds are blind pools.
Effort
Co-investments require real underwriting per deal. Funds outsource that work to the GP.
When to lean each way
Investors with deep sector knowledge and time to underwrite favor co-investments. Investors who want broad exposure with minimal work favor funds.
If you are evaluating a transaction in this space and want a candid second look, Solender Capital is happy to compare notes. Reach out through our contact page and share what you are working on.