Co-investment VS Close Ended Funds
Hey Guys,
I'm seeing a lot of RE investment firms now preferring to offer co-investment opportunities to potential investors rather than close ended funds.
I hear investors prefer these as 1). fees are less and thus returns normally greater 2). They got more say over the investment itself.
Would be interested to hear if anyone is seeing the same and whether they think co-investment could be a challenger to the traditional close ended fund, in addition to what you think of co-investment generally.
Thanks!
No. Firms use co-investment opportunities to entice investors to invest in their closed-end fund (it’s a “sweetener”), where the fees are higher and the waterfall is (likely) more lucrative.
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