AIFs seek co-investment vehicles to allow bespoke deals for key investors

Global market for such deals has been on the rise since at least 2012; one fund exploring opportunities in India.

Sophisticated investment funds for the rich are looking for ways by which some of their investors could pickup additional stake in select investee companies through specially structured deals, over and above the stake taken by the funds themselves.

At least one fund has been exploring such transactions and there has also been an effort to get regulatory clarity on this, said people familiar with the matter.

Globally, investors in a private equity fund are allowed to buy additional stake in the scheme’s investee companies on an individual basis. 

This co-investment is done through separate vehicles (or sleeves) within the fund, which is made