- Co-investment in private equity provides institutional investors with direct access to exclusive deals, offering lower costs and greater control over their assets.
- Secondary markets offer liquidity solutions, flexibility, and diversification, enabling the optimization of portfolio management in an increasingly competitive environment.
Large institutional investors hold more than 25% of their portfolios in private equity. The reason is simple: these assets offer multiple advantages in terms of returns and diversification.
However, what has truly driven portfolio allocations in recent years are two practices that have become very popular: co-investment and secondary market transactions.
Private Equity Co-investment: A Direct Approach
One way to invest in private equity is through co-investment. This approach allows an institutional investor to take a minority stake in a company alongside a private equity firm that leads the deal.
In the guide Private Equity Co-Investment and Secondaries Strategies, we explain in detail the benefits that co-investment offers to all parties involved.
Private Equity Secondary Markets: How to Unlock Liquidity
A lack of liquidity has always been one of private equityâs biggest challenges. Thatâs where the secondary market comes in, allowing investors to buy and sell stakes in existing funds.
These transactions allow investors to adjust their positions without waiting for the fund to mature, reducing the risk of illiquidity. There are several types, such as LP sales, GP-led deals, and direct secondary transactions, that offer flexibility and make it easier to enter or exit the market.
Whatâs Inside Our Guide?
In our guide Private Equity Co-Investment and Secondaries Strategies, youâll discover:
- How co-investment works and why it provides direct access to high-value deals.
- The liquidity options offered by secondary markets, and how they help mitigate the J-curve.
- How these strategies fit into institutional portfolios to balance control, liquidity, and diversification.
- How FlexFunds helps improve the liquidity of private equity assets through securitization programs.
