Equity Co-Investment

Equity co-investment refers to an arrangement in which a limited partner (LP) — such as a pension fund, sovereign wealth fund, family office, or high-net-worth investor — invests directly alongside a private equity or venture capital fund (the lead investor or general partner, GP) in a specific deal or portfolio company, outside the main fund vehicle. Co-investments allow LPs to gain direct, deal-level exposure to specific transactions with lower fees and carry (performance fees) than the main fund, while the GP benefits from additional committed capital for larger deals without exceeding fund concentration limits. Co-investment rights are typically granted to large, strategic LPs as part of their commitment to a fund. In India, co-investment structures are becoming increasingly common as the private equity ecosystem matures. For accredited investors and institutions accessing alternative investments through Ventura Securities' wealth management platform, equity co-investment opportunities represent a way to enhance portfolio returns through direct private market exposure alongside experienced PE managers.