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Co-Capital Investment Partners
Co-Capital Partners looks for experienced
investors with an intelligent strategy and
a defined competitive advantage. Many times,
these investors will have gained experience
in other venture firms or large operating
companies that had venture programs. They
want to focus their investing time into a
particular industry sector or stage allowing
them the opportunity to use their extensive
networks and increase their expertise in
a particular industry. This is a niche market
in the overall private equity world just
as a seed fund is to the panoply of private
equity funds.
Due diligence for primary and secondary investments in private equity
funds whether they be seed stage through buyout remains consistent.
Neither the process nor the factors to be considered change, rather
the lenses or filter changes depending upon the investment strategy.
Co-Capital Partners starts with as wide a funnel as possible, meaning
we want to talk to every new manager in every market, especially
those in markets considered to be niche.
Our due diligence process is designed to evaluate how well the general
partner team sources quality deals, structures and negotiates good
transactions, monitors its investments and exits at the appropriate
time for limited and general partners. In addition to evaluating
the deal process, Co-Capital Partners will also evaluate the probability
that the entire management team will outlive the fund, distributions
in kind will outlive the lockup and a subsequent fund will be likely
for this team.
Highlights of the process are as follows:
- Meeting with potential investment manager.
- Preliminary screening for concentration of risk in managers
or underlying portfolio, size of fund, fit with strategy and
existing investments.
- Should the fund pass the screening, request necessary information
to perform due diligence and evaluate investment opportunity.
(PPM, presentations, agreements, track records, resumes, referrals,
GP terms, management company details). Begin due diligence process.
- Perform additional quantitative and qualitative due diligence
to include multiple manager meetings, reference calls and other
analysis in order to complete evaluation and make investment
decision.
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