At Oxford, we are always seeking innovative, forward-thinking investment solutions. Many of our clients have shared with us that they want more exposure to private equity investments, especially direct private equity investments. Oxford has long offered access to direct private equity through our Mayfair Management Buyout Solution. More recently, we further expanded our direct private equity offering by providing access to co-investment opportunities via our Regent Street fund platform.

A co-investment can be defined as a minority investment in direct private equity transactions sponsored by a General Partner (GP) who serves as the lead manager. A co-investor invests alongside, but outside of, the GP’s private equity fund, and therefore is not subject to the same expense terms as fund investors.

Co-investments can provide a number of benefits including faster deployment of capital, the opportunity to mitigate the private equity “J-curve,” the ability to selectively choose specific opportunities and greater portfolio concentration in best ideas. Among the most significant advantages, however, is the opportunity to access private equity investments at significantly lower costs.

Co-investments offered through Oxford’s Regent Street alternative investments platform offer:

• Unique direct investment access
• Typically no GP management fees or incentive fees, saving clients hundreds of basis points annually
• Potential to generate outperformance at lower cost
• The diversification and operating expertise of investing with leading GPs

Given the many advantages, demand for co-investment opportunities often exceeds supply. As a result, co-investments are typically offered by invitation only to a GP’s most valued Limited Partners (LPs). Oxford’s scale, direct investment expertise and wide network of GP relationships makes us uniquely positioned to access, evaluate and invest in compelling co-investment opportunities with leading GPs. Smaller RIAs simply do not have the opportunity flow, expertise or capital to participate in these investments.

Working closely with GPs on co-investment opportunities allows us to build strong relationships essential to accessing future transaction flow. In addition, this partnership provides us with an important “peek behind the curtain” at the GP’s due diligence, investment and operational processes, generating valuable insights for Oxford’s investment team, without Oxford having a conflict of interest with the GP.