Inside the Club: Institutional Co-investments Are Regaining Popularity, but the Structure Isn't Without Risks
Club deals are gaining momentum in an era when investors are putting a high priority on control and risk management. Because these types of co-investments are open to just a handful of investors at a time, many believe they offer a structural “happy medium” — one that offers the control of a separate account but provides the type of diversity available for smaller investors in a commingled fund. But, like any investment vehicle, the club deal doesn’t come with a guarantee that nothing will go wrong.