Is it rare for Associates to be Allowed to Co-Invest?
Title.
Trending Content - Private Equity Forum
| +71 | First year PE analyst on medical leave after insane hours | 18 | 14h |
| +62 | Take the Layoff or Quit? | 21 | 2d |
| +45 | PE downturn- Impact on a PortCo CFO / Operating Partner | 9 | 1d |
| +44 | Is being an LP super chill? | 23 | 30m |
| +33 | Why are so many bankers exiting to tech? | 16 | 28m |
| +31 | How Do You Train PE Juniors When Banks Do All the Modelling? | 10 | 10h |
| +20 | Dealing with Cold Seniors | 9 | 10h |
| +19 | Tier 4-5 City - Go to work for micro PE? | 3 | 21h |
| +19 | Career in PCA: GP-Led or LP-Led? | 6 | 2d |
| +17 | PE on cycle guide | 3 | 2d |
Career Resources
My firm encourages it.
MF, UMM, MM-LMM?
My firm also encourages it, MF
My firm also allows / encourages it - mega fund
How is it structured? Deal by deal basis? Fixed amount per deal? Or have to sign up for every deal in a fund?
Bump, interested in this at any firm that allows
I've only ever seen it at the fund level. The logic I always heard is that deal-by-deal can lead to misalignment with LPs -- e.g. if you put 5% of the fund's capital into a deal but 50% of your personal net worth, you may be incentivized to favor that portco at the expense of others. Fund level is also just easier to administer.
That said there are firms where carry is heavily weighted toward "your" deals (e.g. CVC) where I wouldn't be surprised if they encourage deal-by-deal for the same reason.
Cheers, helpful.
For what it’s worth, KKR has deal by deal coinvest and it’s a soft expectation that you invest in your own deals.
Curious for places like Blackstone and Bain how it works
At a MM firm and associates can do GP coinvest.
My firm (middle market) encourages it. Committed at a fund level.
Associate at a MM. we get a certain amount towards each individual deal taken out of our bonus. It’s encouraged
No
Sit corporis ad voluptas et asperiores beatae. Eos ducimus sed commodi sapiente. Eum et perspiciatis voluptate culpa repudiandae et sunt. Aut quia sed exercitationem quibusdam beatae. At ut id nemo expedita quis suscipit facilis facere. Qui accusantium voluptas dicta possimus iste occaecati.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...