The Blueprint for Co-Investments: Investing Directly in Private Equity

Key Takeaways

1. Access is expanding, but access alone is not enough.

New structures are broadening access to co-investments, but capturing their potential benefits requires disciplined investment selection and thoughtful portfolio construction.

2. Independent underwriting and selectivity are critical.

Co-investments provide visibility into the underlying company and transaction, but each opportunity should be evaluated on its own merits rather than simply relying on the sponsor’s underwriting.

3. Portfolio construction can be as important as individual deal selection.

Individual co-investments are inherently concentrated, making diversification across companies, sponsors, sectors, and vintages an important part of building a co-investment program.

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Select risks include: information risk, management risk, macroeconomic risk, liquidity risk, risks related to reliance on third parties, and risks related to the sale of investments.

Unlike diversified primary fund commitments, co-investments concentrate capital in individual companies, increasing single-investment risk. Co-investors may also face adverse selection risk, as GPs retain discretion over which opportunities are offered. Independent due diligence is typically required on compressed timelines, and co-investors generally have limited governance rights post-close. Co-investment opportunities are not available to all investors and are not guaranteed to be available or to achieve their objectives.

Past performance is not necessarily indicative of future results. No assurance can be given that any investment will achieve its given objectives or avoid losses. Unless apparent from context, all statements herein represent GCM Grosvenor’s opinion.

Important Risk Information

Investments in alternatives are speculative and involve substantial risk, including market risks, credit risks, macroeconomic risks, liquidity risks, manager risks, counterparty risks, interest rate risks, and operational risks, and may result in the possible loss of your entire investment. No assurance can be given that any investment will achieve its objectives or avoid losses. Past performance is not necessarily indicative of future results. The views expressed are for informational purposes only and are not intended to serve as a forecast, a guarantee of future results, investment recommendations, or an offer to buy or sell securities by GCM Grosvenor. The investment strategies mentioned are not personalized to your financial circumstances or investment objectives, and differences in account size, the timing of transactions and market conditions prevailing at the time of investment may lead to different results. Certain information included herein may have been provided by parties not affiliated with GCM Grosvenor. GCM Grosvenor has not independently verified such information and makes no representation or warranty as to its accuracy or completeness.

All expressions of opinion are subject to change without notice in reaction to shifting market, economic, or political conditions. Certain information included herein may have been provided by parties not affiliated with GCM Grosvenor. GCM Grosvenor has not independently verified such information and makes no representation or warranty as to its accuracy or completeness. GCM Grosvenor® and Grosvenor® are trademarks of GCM Grosvenor and its affiliated entities. ©2026 GCM Grosvenor L.P. All rights reserved.