Co-Investment · Alignment
Co-Investment Program
Team capital alongside fund · No fees, no carry · LTCG tax treatment
Investment Thesis
Skin in the Game: Tax-Efficient Team Alignment
The co-investment program allows team members to invest personal capital alongside the fund at identical terms — no management fee, no carried interest. Returns are taxed at long-term capital gains rates, providing significant tax alpha versus ordinary income.
Implication 1
For a partner with $100M in carry, the LTCG vs. ordinary income differential on co-invest can exceed $13M in tax savings over the fund life.
Implication 2
Pro-rata distributions with the fund ensure co-investors share identical economics and timing with LPs.
Total Commitment
$72.5M
Team co-invest
Deployed
$50.8M+8%
70% called
Tax Advantage
LTCG
vs ordinary on carry
No Carry
0%
On co-invest returns
Est. Return
1.62x+0.04x
At current NAV
Co-Investment Program Terms
BENEFITS
• Same terms as fund (no premium)
• No management fee on co-invest
• No carried interest charged
• Pro-rata distributions with fund
• Long-term capital gains treatment
MINIMUM COMMITMENTS
Partner$5.0M
Managing Director$2.0M
Principal$1.0M
Vice President$0.5M
Associate$0.3M
Team Co-Investment Status
7 participantsJames Hartwell
Partner
Committed: $25.0MDeployed: $17.5M (70%)
Est. Return
$28.4M
Victoria Chen
Partner
Committed: $18.0MDeployed: $12.6M (70%)
Est. Return
$20.4M
Marcus Webb
Partner
Committed: $15.0MDeployed: $10.5M (70%)
Est. Return
$17.0M
Sarah Kim
Managing Director
Committed: $8.0MDeployed: $5.6M (70%)
Est. Return
$9.1M
Robert Alvarez
Principal
Committed: $4.0MDeployed: $2.8M (70%)
Est. Return
$4.5M
Emily Zhang
Vice President
Committed: $2.0MDeployed: $1.4M (70%)
Est. Return
$2.3M
Daniel Torres
Associate
Committed: $0.5MDeployed: $0.3M (70%)
Est. Return
$0.6M
TAX ADVANTAGE
Co-invest returns are taxed as long-term capital gains (20% + 3.8% NIIT = 23.8%) vs carried interest which may be taxed as ordinary income (up to 37%) depending on holding period. For a partner with $100M carry, the tax differential can exceed $13M.