A co-investment is a direct investment made by a Limited Partner alongside a General Partner in a specific portfolio company, outside the main fund structure. The LP invests directly in the deal vehicle (alongside the fund) at the same terms and price as the fund, typically with reduced or zero management fees and carried interest. Co-investments offer LPs the ability to increase exposure to their highest-conviction deals at a lower total cost than the fund.

For GPs, co-investments are a competitive tool: offering co-investment rights to LPs strengthens LP relationships and allows the fund to pursue larger deals (the fund's equity check is supplemented by LP co-investment capital). For LPs — particularly family offices, sovereign wealth funds and institutional investors — co-investments provide direct deal exposure, portfolio diversification, and skill-building without paying the double layer of fund fees. The co-investment market in Franco-Swiss mid-market PE has grown significantly since 2018, with deals ranging from CHF 2–20 million alongside core fund investments of CHF 10–50 million.

At Hectelion, we advise on co-investment opportunities in our LP advisory mandates and provide independent valuations of co-investment targets to enable informed LP investment decisions.

At Hectelion, we advise institutional and private LP clients on co-investment assessment and provide independent valuations in our valuation and fundraising mandates.