Family offices are increasingly recognizing private equity co-investment as a means of generating strong returns while exercising greater control over their portfolios. This approach is not without its challenges, however, as Private Banker International explores in this feature article.
Family offices are now investing in a wide range of co-investment transactions, from investing as members of equity syndicates formed for participation in leveraged PE buyouts to joining the debt syndicates as a lender, to participating in venture capital equity syndicates, according to Daniel Berick, Americas Chair of the global Corporate Practice at Squire Patton Boggs.
"The co-investment strategy allows a family office that is not prepared to make direct investments on its own – whether because of investment concentration concerns, limited internal investment team resources or expertise, or access to deal flow – to achieve the potential of a higher return than it might realize from investing solely through the fund as a limited partner," he says.
This article is posted with permission from Private Banker International. For more information, see www.privatebankerinternational.com.