Co-investments are minority investments that are made directly into a portfolio or operating company alongside one ore more private equity investors or financial sponsor. Co-investments are gaining in popularity in part because they can be a lower cost option for standard private equity investors. Yet, co-investments may not be right for everyone. Club deals or syndicated investments are a form of buy-out. The following course will provide an overview of co-investments and club deals, when they work and to structure them as well as legal, regulatory and economic considerations.
Highlights of the course include:
- Structure of co-investments and club deals
- Why co-investments?
- Forms of co-investment vehicles
- Economic & legal rights of co-investors, sponsors and limited partners
- Affiliate transactions and advisory fees
- Preemptive rights to co-investors
- Unwitting restrictive covenants
- Regulatory, tax and ERISA considerations in PE co-investment transactions