All photography provided by Jared Chambers
Fiduciary Co-investment Partners ("FCP") is a London-Headquartered alternative investment partnership whose mission is to deliver institutional grade co-investments to Institutions, private banks, wealth managers and their UHNW clients on a deal-by-deal basis.
Drawing on its Founding Partner's decade of experience co-investing alongside dozens of the world's leading alternative investment managers, FCP is a new private markets platform designed to provide institutions, family offices, and UHNWIs access to the highest quality co-investment opportunities otherwise unavailable to them. FCP's intention is not to lead transactions; it will only align itself alongside the most sophisticated and proven "lead investors" in deals exhibiting similar qualities to their successful investments in the past.
'Buy-side', not 'Sell-side', approach
FCP plans to commit a substantial amount of capital towards every transaction, regardless of risk profile or asset class. Having this 'skin in the game' ensures a strong alignment of interest with clients, driving the firm to take a fiduciary, 'buy side' approach as opposed to viewing opportunities with a 'sell-side' mentality driven by brokerage or agency fees.
Solving the access & execution challenge
Co-investments alongside the highest quality lead managers are, unfortunately, not easily accessible. Until now, the highest quality co-investments have typically been offered to large existing fund LPs first, subsequently (in the case of overflow) to perspective investors such as pension funds, insurance companies, sovereign wealth funds, funds-of-funds, and only finally to smaller, less strategic investors such as family offices. Smaller investors may be experiencing significant deal flow, but they must ask themselves serious questions about the quality of the deals and the risks represented by the underlying 'lead managers', who are, more often than not, promotors or 'fundless sponsors' who represent significant counterparty risk.
Although co-investment execution and due diligence is lighter than that required for a similarly sized direct investment, the reality is that active and leading players in the institutional co-investment world still employ well-resourced teams numbering into the dozens. Very few family offices or UHNW individuals can replicate a similar execution bench on an economically viable basis.
FCP's team comprises of individuals who have sourced hundreds of opportunities per year, and executed and monitored dozens of successful co-investments over the last decade. FCP spreads the costs of its institutional grade platform across a much larger AUM base than any one of its individual clients. Furthermore, it will aggregate its clients' allocation, demand and firepower, creating a more robust and likely preferable negotiating position with lead managers.