Co-Investment Vehicles in France
A co-investment vehicle lets specific limited partners put additional capital directly into a deal the main fund is already doing. The sponsor coordinates allocation between the fund and the co-investors, and reports on both without letting the two records diverge.
LP co-invest coordination with allocation logic, side-letter tracking and reporting alongside the sponsor fund, without spreadsheet reconciliation.
French private funds commonly take the form of FPCI, SLP or FCPR vehicles, managed by a société de gestion authorised or registered with the AMF.
How co-investment vehicles are actually run
Co-invest is the most relationship-sensitive structure a sponsor runs. Allocation decisions are visible, they are remembered, and they set expectations for the next fund. An LP who was offered co-invest last time and not this time will ask why, and the answer needs to be defensible against a written policy rather than improvised.
The operating difficulty is that the same underlying asset now sits in two places at once. Ownership, valuation and proceeds must stay consistent across the fund position and the co-invest position, through follow-on rounds, recapitalisations and partial exits. Reuben AI keeps a single asset record with multiple claims against it, so the two views cannot drift.
Regulatory framework
Local structuring, tax and regulatory advice is the responsibility of the fund's counsel and administrator. Reuben AI does not provide legal or tax advice.
How Reuben AI supports Co-Investment Vehicles in France
What the manager has to keep straight
Allocation policy
The rule that decides who is offered what, applied consistently and evidenced per deal.
Dual reporting
Fund-level and co-invest-level reporting driven from the same asset record and the same valuation.
Side-letter rights
Priority, capacity and information rights tracked against the investors who negotiated them.
Follow-on mechanics
Later rounds diluting or accreting both claims in step, with the resulting ownership recomputed rather than re-typed.
Lifecycle of a co-investment in France
| Stage | Work | Record produced |
|---|---|---|
| Deal sized | Total cheque set, fund capacity determined, co-invest gap identified. | Allocation memo |
| Offer | Eligible investors approached in line with policy and with rights already granted. | Allocation audit trail |
| Close | Co-invest commitments recorded against the same asset the fund holds. | Linked position record |
| Hold | Single valuation feeding both the fund report and the co-invest report. | Shared valuation history |
| Exit | Proceeds split between fund and co-invest claims on the executed terms. | Split distribution statement |
| Governance and audit | Approvals, conflicts, valuation policy and investor consents recorded as they happen rather than reconstructed at audit. | Immutable decision log and evidence pack |
Stages describe the operating workflow. Statutory filings and local registration requirements are set by AMF (Autorité des marchés financiers) and the fund's counsel.
Often confused with
An SPV may be the wrapper used to hold the co-investment, but co-invest specifically describes capital running alongside a main fund under an allocation policy.
An SMA gives one investor a bespoke mandate across many assets. Co-invest gives several investors extra exposure to one asset.
Common questions
How is allocation fairness evidenced?
By recording the policy, the capacity available and the offers made for each deal, so the decision can be explained later from the record rather than from memory.
Do co-investors see the main fund's data?
No. Access is scoped to the vehicle an investor is in. The shared asset record sits behind both views, but each investor sees only their own claim.
What happens on a follow-on round?
Both the fund claim and the co-invest claim are recomputed from the new round terms, so ownership stays consistent across every downstream report.