Two opposite answers to the same problem: how does an LP get good private equity exposure at an acceptable cost? A fund of funds (FoF) adds an intermediary layer, and an extra layer of fees, in exchange for diversification, access and expertise. Co-investment removes a layer by investing directly alongside the GP in specific deals, usually with no fee and no carry. Most sophisticated LP programs now combine the two, and the biggest FoF managers have become multi-strategy "private markets solutions" platforms that do both.
What the study covers
- 1Overview
- 2How it works
- 3Economics and key numbers
- 4Key players and landmark deals
- 5Risks and pitfalls
- 6How an expert thinks about it
- 7Glossary
- 8Related sections