Making Sense of the Direct and Co-Investment Landscape

As direct and co-investments have gained in popularity among family office and institutional investors, investment firms have responded by offering a variety of options to meet this demand. But not all direct or co-investment opportunities are the same, and the challenges and pitfalls they present to an investor vary depending on the different pipes that source the deal. This piece considers the various sources for direct and co-investments to better understand the pros and cons of each so that investors – particularly family offices and small to mid-size institutional investors who often lack access to the best deals or sufficient resources to evaluate them – can better navigate this increasing complex and crowded landscape.

Are Free Co-Investments Really Free?

With public markets becoming increasingly expensive, family offices and institutional investors are turning to the private markets to meet their risk/return targets. While private equity funds have historically been the venue to access private markets for traditional LPs, there has been a desire to bypass the funds and go direct. As discussed in a recent Bloomberg article, investors have started to build out the capability to evaluate direct and co-investment opportunities, but most still prefer to participate in opportunities originated by their current GPs and given to them typically on a no fee no carry basis. In turn, PE firms use co-investment opportunities as a carrot to raise capital for their committed funds.

Current Themes for Strategic Chinese Investors

Everyday RueOne Investments speaks to investors, deal sponsors, asset managers, companies and deal providers from around the world in our effort to help institutional investors, family offices and select individuals find compelling direct investment opportunities. One of the topics that we seem to get asked with great frequency is: What does China want? Or, more specifically, what are Chinese investors thinking and doing with their capital? Based on our conversations with a variety of parties, here are some of our observations on the types of investments that Chinese investors are looking for.

RueOne Investments to Host LinkedIn Forum on Direct Investment in Alternatives

First of New Discussion Series to Take Place on Thursday, February 9th @ 4pm EST

RueOne Investments(RueOne) will host its first Direct Investment Discussion Forum on LinkedIn’s Direct Investments & Co-Investments in Private Equity & Real Estate Group page (https://www.linkedin.com/groups/12009633) on Thursday, February 9th at 4PM EST. The Forum will provide a way for institutional investors, family offices, deal sponsors, asset managers and other interested parties to ask questions they have regarding direct investing, alternative investments, co-investment, the current investment landscape and other related topics. This will be the first of a series hosted by RueOne on the LinkedIn Group page.

RueOne Investments Appoints Michael Yoon to Council of Experts

RueOne, the alternative asset manager that offers institutional investors and family offices direct investment opportunities on a deal by deal basis, today announced that Michael Yoon has been appointed to RueOne’s Council of Experts. Yoon brings more than 20 years of executive management expertise in technology-related roles at both startups and large corporations, which includes experience raising funds and investments. He will advise RueOne’s investment committee on technology related investments. 

New at RueOne: Up to $8M Financing For a Medical Device Company Focusing on Hypertension

RueOne is offering investors the ability to participate in a financing for a medical device company with a unique product to treat uncontrolled hypertension, a condition that affects 35 million Americans and could represent a $100 Billion market opportunity in the US alone.

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