Co-investment return modeler
The same dollars, two ways in: through the main fund (full fees and carry) or as a co-investment (often fee-free, carry-free). See exactly how much net return the co-invest sleeve adds.
| Per $10M invested | Via main fund | Co-investment |
|---|---|---|
| Gross proceeds | $25.00M | $25.00M |
| Management fees | –$1.00M | –$0.00M |
| Carried interest | –$3.00M | –$0.00M |
| Net to investor | $21.00M | $25.00M |
| Net MOIC | 2.10× | 2.50× |
| Net IRR | 16.0% | 20.1% |
| Co-invest advantage | +$4.00M |
Single-deal model with simple fee accrual over the hold and a full GP catch-up — co-invest terms, timing and deal selection differ in practice. Educational only, not advice. Built by aama.io.
About this tool
Co-investment lets an LP put capital directly into a deal alongside the fund, typically with reduced or zero management fee and carried interest. Because the fee and carry drag is removed, the same gross deal return translates into a higher net return for the LP.
This modeler runs an identical deal through both routes — the main fund and a co-investment — and quantifies the net MOIC and IRR uplift from co-investing.
How to use it
- Enter the investment amount, gross MOIC and hold period.
- Set the main fund's management fee, carry and preferred return.
- Set the co-investment fee and carry (often zero), then compare net return, MOIC and IRR.
Frequently asked questions
What is a co-investment?
A co-investment is a direct investment by an LP into a specific deal alongside a fund, usually on fee-light terms (reduced or no management fee and carry). It lets LPs increase exposure to chosen deals while lowering blended costs.
Why are co-investments often fee-free?
GPs offer co-investments at low or no fee and carry to attract LP capital into larger deals, deepen LP relationships and support fundraising. The fee-light economics are the main reason LPs value co-investment rights.
How much do co-investments improve net returns?
By removing most management fee and carried interest, co-investments can add several hundred basis points of net IRR versus the same deal accessed through the fund — the exact uplift depends on the fee load, carry and hold period.