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Direct, co-investment in the spotlight

They are becoming an appealing private equity proposition in South-east Asia due mainly to the low-yield environment.

Published Tue, Oct 11, 2016 · 09:50 PM

IS direct and co-investment in private equity on the rise in South-east Asia, and what difference does it make?

The issue will be brought into sharp focus at the South-East Asian Private Equity Conference to be held in Singapore on Oct 14, bringing together leading players in the private equity domain from across the region, where I will be moderating a panel on this topic.

What are direct and co-investments, and how do they differ from traditional methods of private equity financing? At its simplest, under the traditional model, General Partners manage the fund concerned, while Limited Partners invest in it. There is a clear delineation between the two, in that General Partners manage the operations, due diligence, investing and exit decisions, while Limited Partners reap the rewards or losses and do not interfere in the investment strategy.

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