Co-investment diligence has four pillars. Each takes one to two weeks of focused work if you do it yourself, less if you rely on the sponsor's third-party reports.
Company diligence
Read the QofE in full. Verify customer concentration, gross margins, working capital, and growth assumptions.
Market diligence
Confirm the industry growth rate, competitive landscape, and any regulatory or technological tailwinds the thesis depends on.
Sponsor diligence
Track record, references, alignment, and operating support depth.
Document diligence
Read the LP agreement, subscription documents, and management incentive plan carefully. Pay particular attention to distribution waterfall, tag and drag rights, and reporting obligations.
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.