Co-investments are becoming an increasingly important route through which U.S. institutional investors access private markets, according to the latest edition of Cerulli Edge—U.S. Institutional Edition.
According to its analysis, as demand continues to grow, co-investment capabilities are no longer simply an option for asset managers: they are becoming a standard expectation and a key factor in attracting institutional interest.
“Within private markets, co-investments have emerged as a highly relevant alternative for institutions seeking to reduce the distance between pooled fund structures and direct asset ownership,” Cerulli notes. Its analysis concludes that a net 16% of asset owners expect to increase their allocation to co-investments over the next 24 months; 19% anticipate increasing it, compared with only 3% who expect to reduce it.
Cerulli points out that institutions use…
