How LPs Assess GP Co-Investment Alignment

Limited partners are increasingly asking for co-investment rights, but getting them is one thing; getting them right is another. In this episode, Lucas and Luna break down what LPs should actually look for when a GP offers co-investment opportunities. They explore the key terms that matter—from pro-rata rights to fee structures—and highlight how misaligned co-investment programs can quietly undermine a limited partner's returns. Using the 2021 venture boom as a cautionary tale, they explain why many LPs ended up with concentrated, under-diversified co-investment portfolios, and how to avoid that trap. Lucas walks through a practical framework for evaluating co-investment documents, including how to spot red flags like excessive transaction fees or a GP's conflicting motivations. They also discuss the growing trend of GPs using co-investment as a relationship-building tool rather than a purely financial one. By the end, listeners will know exactly what to negotiate for in their next side letter—and what to walk away from. #VentureCapital #LPs #CoInvestment #LimitedPartners #GPs #FundTerms #DueDiligence #SideLetters #PrivateEquity #StartupInvesting #AssetAllocation #RiskManagement #PortfolioConstruction #Finance #Business #FexingoBusiness #BusinessPodcast #InvestmentStrategy Keep every episode free: buymeacoffee.com/fexingo