{"id":36,"date":"2024-09-30T18:31:37","date_gmt":"2024-09-30T18:31:37","guid":{"rendered":"http:\/\/lexington.local\/?page_id=36"},"modified":"2026-03-12T20:43:19","modified_gmt":"2026-03-12T20:43:19","slug":"co-investment-partners","status":"publish","type":"page","link":"https:\/\/www.lexingtonpartners.com\/investment-strategies\/co-investment-partners\/","title":{"rendered":"Co-Investment Partners"},"content":{"rendered":"
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Leading Co-Investment Program<\/h3>\n\n\n\n

In 1998, Lexington created Co-Investment Partners (CIP), one of the first independent, discretionary co-investment<\/span> programs. Established by current CIP partners, CIP is one of the most experienced and dedicated co-investment<\/span> teams in the industry. CIP\u2019s partners have worked together at Lexington for over 22 years on average, investing through multiple economic cycles.<\/p>\n<\/div>\n\n<\/div>\n <\/div>\n

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When we formed CIP, our theory was that deals were going to get bigger and sponsors wouldn\u2019t 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.<\/h4>\n<\/div>\n\n\n
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\n <\/span>28<\/span><\/span>\n <\/h2>\n

Years of Dedicated Co\u2011Investment Experience<\/p>\n <\/div>\n

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\n $<\/span>14<\/span>B+<\/span>\n <\/h2>\n

Total Capitalization<\/p>\n <\/div>\n

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\n <\/span>7<\/span><\/span>\n <\/h2>\n

Co-Investment Funds<\/p>\n <\/div>\n

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\n <\/span>19<\/span><\/span>\n <\/h2>\n

Dedicated Co-Investment<\/span>
Professionals<\/p>\n <\/div>\n

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\n $<\/span>10<\/span>B+<\/span>\n <\/h2>\n

Invested\u00a0<\/p>\n <\/div>\n

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\n <\/span>610<\/span>+<\/span>\n <\/h2>\n

Co-Investments
Completed\u00a0<\/p>\n <\/div>\n

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\n <\/span>200<\/span>+<\/span>\n <\/h2>\n

Sponsors Co-Invested
Alongside\u00a0<\/p>\n <\/div>\n

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\n <\/span>3,700<\/span>+<\/span>\n <\/h2>\n

Transactions Sourced From
750+ Sponsors<\/p>\n <\/div>\n <\/div>\n \n<\/div>\n<\/section>\n\n\n

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Why Do GPs Seek Experienced \u2028Co\u2011Investors?<\/h3>\n\n\n\n

Over the past 28 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<\/span> in private equity transactions for a variety of reasons.<\/p>\n<\/div>\n\n<\/div>\n <\/div>\n <\/div>\n

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    Control<\/h4>\n <\/div>\n

    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.<\/p>\n <\/div>\n <\/div>\n <\/li>\n

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    Reliable Approval Process<\/h4>\n <\/div>\n

    Private equity sponsors have developed more confidence in experienced co-investors as a reliable source of equity capital.<\/p>\n <\/div>\n <\/div>\n <\/li>\n

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    Investment Caps<\/h4>\n <\/div>\n

    To build a diversified portfolio, private equity sponsors typically limit exposure to individual transactions, frequently capping investment at less than 10% of their fund\u2019s capital.<\/p>\n <\/div>\n <\/div>\n <\/li>\n

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    Fund Size<\/h4>\n <\/div>\n

    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.<\/p>\n <\/div>\n <\/div>\n <\/li>\n

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    Fluctuating Equity Component<\/h4>\n <\/div>\n

    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.<\/p>\n <\/div>\n <\/div>\n <\/li>\n

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    Strengthened Limited Partner Relationships<\/h4>\n <\/div>\n

    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.<\/p>\n <\/div>\n <\/div>\n <\/li>\n <\/ol>\n <\/div>\n <\/div>\n\n<\/div>\n<\/section>\n\n\n

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    Why Do GPs Work with CIP?<\/h3>\n\n\n\n

    Co-Investment Partners is a leading manager of private equity co-investments<\/span>. GPs choose to work with CIP for the following reasons:<\/p>\n\n\n\n