Comments (13)

Jan 13, 2022 - 8:55pm

So your co-invest is from the GP? Do you mind if I ask what the max size of the loan is? 

At my firm associates can pick and choose investments on a deal by deal basis and fund up to a certain $. Only problem is that this is just from our savings so I was seeing if other firms have a leverage facility that associate let you use / how do you set one up / what other dynamics I should consider. 

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  • Associate 3 in PE - LBOs
Jan 14, 2022 - 12:15am

Same setup at my fund. $1.5B, 8 associates. 50% LTV on your co-invest (so if you want to invest $100k of cash you commit $200k and they'll finance half of it). 
 

I use a security-backed line of credit to finance my half so I don't actually come out of pocket for anything, blended interest rate ~4% between the two facilities with $100k invested and no cash out the door

Jan 14, 2022 - 9:46am

>$10bn MF:

For associates, the GP gives us an advance to our expected net bonus until the next bonus cycle. Other than that no leverage on Associate level, meaning your max leverage on the Co-invest is ~1x next net bonus.

For mid-level and Partners, the GP organised a credit line funding 75% LTV.

Jan 14, 2022 - 9:02pm

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