Leaving firm - what usually happens to money you co-invest (not carry)?
Reading the co-invest docs I have it leaves it pretty open as to if I can be bought out/assign my share and how that might work.
So I'm wondering what's the customary practice regarding this. Assuming it's a good investment with meat on the bone, are firms generally happy to buy out your share for par or even just at the initial contribution amount? Also if leaving on good terms, would it be good practice to leave your investment in to show well wishes to the firm, that you still support them as an investor?
Based on the most helpful WSO content, here's what you need to know about co-investments when leaving a firm:
Customary Practice for Co-Investments Upon Leaving:
Buyout at Par or Initial Contribution:
Leaving Your Investment In:
Ultimately, the specifics can vary depending on the firm's policies and the terms outlined in your co-investment agreement. If you're leaving on good terms, maintaining your investment could reflect positively, but it’s essential to weigh this against your personal financial goals and obligations.
Sources: Differences between Co-invest and Secondaries?, https://www.wallstreetoasis.com/forum/private-equity/co-invest-and-carry-what-happens-if-you-leave-the-firm?customgpt=1, What returns have you achieved from co-investing in your fund?, Value Buy-out vs Growth Buy-out Discussion from Associate Perspective, What returns have you achieved from co-investing in your fund?
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