FCP brings to its partners a new approach to co-investing

Multi-asset class: We have deep-rooted relationships with the most sophisticated alternative asset managers. We provide access to the full range of Private Market opportunities from Private Equity and Private Debt to Infrastructure and Real Estate

Transparent pricing model: No complex fee structures or heavy upfront broker payments. We are incentivised by long-term performance, in full alignment with the interest of our investors 

Deal-by-deal investments: No blind pool fund investments with long lock-up periods - you decide if, how and when to invest your capital

A true fiduciary: Banks and other institutions often have an incentive to close a deal and earn an upfront fee, rather than taking true responsibility for their clients’ capital. We invest our money alongside yours - in every deal

“…you are not being invited to a special dance, you are being approached because you are a lender of last resort…”

— Bill Gurley, General Partner, Benchmark Capital, Above the Crowd, April 21, 2016 

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. Not all institutions or family offices can replicate similar execution capabilities on an economically viable basis.

FCP addresses these problems by spreading the costs of its institutional grade sourcing and execution platform across a much larger Private Markets AUM base than that of any one of its individual clients. Furthermore, it aggregates clients’ firepower to establish a more credible co-investment counterparty to lead managers.

Co-investments alongside the highest quality lead managers are, unfortunately, not easily accessible. The highest quality co-investments are typically offered to large existing fund LPs first, to prospective big-ticket investors second, and only finally to smaller, less strategic investors such as family offices. 

Smaller investors may experience significant deal flow through various channels, but they must ask themselves serious questions about the quality of said deals: why have larger LPs opted against investing? What incentive, if any, does a placement agent or broker have to pitch a good deal? And how much counterparty risk is there in supporting an independent sponsor that lacks certainty of funding?