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Situation:
In the current market, fundraising has become a challenge for most Private Equity firms.
GPs need to adapt to the new environment and find alternative ways to raise funds.
Solution:
RainMakers’ Co-Investment Program is an innovative way to fundraising by syndicating a deal into co-investment opportunities, which we place with LPs with whom we have mutual and long-established relationship.
The Co-Investment Program is an alternative to the traditional fundraising scheme, shifting perspectives into offering co-investment opportunities to the LP community, instead of seeking ever larger capital commitments from LPs.
Benefits to GPs:
- GP stretches its investment capacity
- Generates a new stream of management fees, and carried
- Path of least resistance in building a relationship with new LPs, who might eventually invest in GP’s next funds
- GP benefits from a deal-by-deal carried interest scheme
- Transitions into an on-going fundraising process, permanently maintaining contact with new potential investors.
Benefits to LPs:
- LPs benefit from visibility on an investment prior to making an investment decision
- LPs pay management fees only when capital is at work
- LPs get to know a GP through a real transaction prior to making a commitment to a new fund
- No blind capital commitment, beyond the Co-investment deal
