At IPEM 2023 in Cannes, Carole Barnay shed the light on current market challenges for co-investors. She emphasized the importance of having a large dealflow to focus on quality assets: market leaders, combining revenue recurrence with continued growth. While pointing out today’s attractions of a highly diversified co-investment strategy, Carole Barnay stressed the importance of the human factor (management and shareholders) as an ever more critical protection in uncertain environment. She strongly advised investors to choose experienced and reputable fund managers, with a long-lasting track record of successful co-investments.
When talking about co-investment, the inherent risk is the non-controlling status, requiring partnering with strongest private equity players and full alignment of interests. Hence, the go/no go investment decision is even more crucial than for a majority investor.
IPEM 2023 Cannes
Navigating the risks of Co-Investment in the current market