Capital Allocators – Inside the Institutional Investment Industry avatar

Dexa/Capital Allocators – Inside the Institutional Investment Industry

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Co-Investment Dynamics

Co-investments are reshaping the investment landscape, as many limited partners seek to lower fees while chasing better returns. However, a striking contrast emerges: while 43% of limited partners cite returns as a reason for co-investing, a significant 86% of general partners prioritize building closer relationships with their investors. This discrepancy highlights a critical shift in motivations within the industry, as the push for larger deals often leads to inflated pricing and questions about the true value of these investments.