Co-Investment
When limited partners invest directly alongside a general partner in a specific deal, typically with reduced or no management fees.
Co-Investment explained
Co-investment lets an LP put additional capital into a specific deal alongside the fund, usually on reduced fee terms. For the GP it is a relationship instrument and an allocation discipline: who is offered the opportunity, how quickly they must respond, and how the allocation is documented all need a defensible policy rather than an ad hoc decision.
How it works in practice
- Co-invest rights and preferences are recorded per LP, not remembered per partner.
- Offer, response and allocation are timestamped so the process is reviewable.
- The co-invest vehicle carries its own reporting line rather than being folded into the fund.
Common mistake
Offering co-investment informally and creating an expectation of access that the fund cannot apply consistently.
Why it matters in private capital
Co-Investment sits inside a chain of decisions that runs from sourcing through diligence, investment committee, portfolio monitoring and LP reporting. When each stage lives in a different tool, the evidence behind the decision is rebuilt at every handover. Keeping the concept on one record is what makes the fund able to explain, not just report, what it did.
How Reuben AI handles Co-Investment
Reuben AI is one platform for the full private capital workflow. Deal intake and screening at /deal-flow-management, diligence and IC memos at /ic-memo-software, portfolio monitoring and LP reporting at /lp-reporting-software all read from the same record, so Co-Investment does not need to be re-entered per tool. Pricing is at /pricing.
Frequently asked questions
What is Co-Investment?
When limited partners invest directly alongside a general partner in a specific deal, typically with reduced or no management fees.
How does Co-Investment work in practice?
Co-investment lets an LP put additional capital into a specific deal alongside the fund, usually on reduced fee terms. For the GP it is a relationship instrument and an allocation discipline: who is offered the opportunity, how quickly they must respond, and how the allocation is documented all need a defensible policy rather than an ad hoc decision.
What is the most common mistake with Co-Investment?
Offering co-investment informally and creating an expectation of access that the fund cannot apply consistently.
How does Reuben AI handle Co-Investment?
Reuben AI keeps Co-Investment on the same record as sourcing, diligence, investment committee, portfolio monitoring and LP reporting, so the underlying evidence does not have to be rebuilt for each workflow.
Related terms
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