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Investment strategies

Co-Investment Partners

Co-Investment Partners

Leading Co-Investment Program

In 1998, Lexington created Co-Investment Partners (CIP), one of the first independent, discretionary co-investment programs. Established by current CIP partners, CIP is one of the most experienced and dedicated co-investment teams in the industry. CIP’s partners have worked together at Lexington for over 20 years on average, investing through multiple economic cycles.

When we formed CIP, our theory was that deals were going to get bigger and sponsors wouldn’t be able to do them all by themselves, and yet might be reluctant to share them with direct competitors. We are experienced passive capital and have full discretion to quickly commit.

26

Years of Dedicated Co‑Investment Experience

$10B+

Total Capitalization

6

Co-Investment Funds

17

Dedicated Co-Investment
Professionals

$8.8B+

Invested 

530+

Co-Investments
Completed 

180+

Sponsors Co-Invested
Alongside 

3,300+

Transactions Sourced From
670+ Sponsors

Why Do GPs Seek Experienced 
Co‑Investors?

Over the past 26 years, co-investments have developed into an active portfolio management tool for both limited partners and general partners, and now account for a significant share of global private equity volume. Lexington believes that general partners will increasingly utilize co-investment in private equity transactions for a variety of reasons.

  1. Control

    Many buyout sponsors elect to not invite competing sponsors into their transactions to ensure control over the investment going forward, preferring to complete their equity group with more passive co-investors.

  2. Reliable Approval Process

    Private equity sponsors have developed more confidence in experienced co-investors as a reliable source of equity capital.

  3. Investment Caps

    To build a diversified portfolio, private equity sponsors typically limit exposure to individual transactions, frequently capping investment at less than 10% of their fund’s capital.

  4. Fund Size

    Sponsors of small- to mid-cap funds often find transactions within their area of expertise or sector focus that require equity investments larger than their fund sizes allow.

  5. Fluctuating Equity Component

    During periods of economic contraction, the average equity contribution to leveraged buyouts, as a percentage of transaction value, tends to increase as debt markets tighten.

  6. Strengthened Limited Partner Relationships

    Co-investments provide an opportunity for sponsors to work more closely with key limited partners, typically involving regular interactions while the transaction is being evaluated.

Why Do GPs Work with CIP?

Co-Investment Partners is a leading manager of private equity co-investments. GPs choose to work with CIP for the following reasons:

  • Full discretion to quickly commit co-investment equity
  • Early involvement and commitment of resources alongside sponsors
  • Experienced team in a variety of industries
  • International capability with dedicated local teams in the U.S. and Europe
  • No transaction fees sought
  • Flexibility to accommodate changes in transactions and unique deal requirements
  • Continuity of dedicated professionals to ensure the same team from closing through exit
  • Focused agenda since CIP does not seek lending or advisory relationships

OUR
CO-INVESTMENT TEAM

OUR
MILESTONES