It appears that a handful of solid UMM firms and many MM firms are allowing associates to co-invest on a levered basis.
Has anyone heard which firms offer the best co-investment opportunities?
I have heard that Greenbriar offers associates the ability to invest up to 15K per year at 3x, HIG up to 100k, I believe at 1.5x. If anyone has heard anything else as to what other firms are offering, I'd greatly appreciate the insight. Thank you!
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Silver Lake, invest 100k of your own capital with 3x leverage
Levered co-invest is important. Keep the returns you get also in mind if you are optimizing for highest levered return.
Vista lets Associates co-invest
Is there a cap?
I wouldn't put much weight in this when looking at firms. Sure, a nice perk, but you aren't playing for co-invest returns in PE, especially at the junior levels.
Sure but by that logic comp doesn’t matter either.
That's not remotely the point. Co-invest isn't going to dramatically change your life unless you're extremely aggressive and lucky. At the junior level, you're really playing for the (i) learning experience and (ii) opportunity to get carry.
Your HIG data is inaccurate. They provide co-invest on a fixed dollar amount per deal basis across all levels, but different max amount per level. So co-invest deployment all depends on deal volume. You can also sign up for a leverage line up to $500,000 at 70% LTV per deal.
Thanks for the fact-check. Can you elaborate a little bit on this?
I think I understand what you are saying to a point, but a little unsure if these options are mutually exclusive or not.
Are you allowed to do both at all times? Also, assuming you know someone there, what is the comp at the Associate level precisely? Thank you!
Apollo has 3x leverage up to $10MM at associate level (not sure if it changes at more senior levels)
Any idea on WP?
What would be considered an appropriate fund-level co-invest amount for an associate (no leverage)? Any range people have seen would be helpful
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