How LPs Evaluate GP Co-Investment Alignment

In this episode, Lucas and Luna dig into a topic every limited partner wrestles with: how to tell whether a GP's co-investment offer is a genuine alignment tool or just a way to offload risk. They walk through a real-world case from the 2021-2022 vintage, when co-investments surged and many LPs got burned by deals that looked like access but were really GP exits. They explain the key red flags—like when a GP offers co-investment in a company that's already marked up, or when the co-investment comes with no discount but the GP's fund gets a fee. They also break down the due-diligence questions LPs should ask before writing a check: Is the GP putting its own capital in? What's the fee structure? Is there a fairness opinion? And they discuss how to negotiate for better terms, including the emerging norm of co-investment side letters. If you're an LP or just curious about how venture capital actually works behind the scenes, this episode gives you a concrete framework for evaluating co-investment opportunities. #CoInvestment #VentureCapital #LimitedPartners #GPDueDiligence #LPStrategy #Alignment #FundManagement #FeeTransparency #VCInvesting #Finance #Business #FexingoBusiness #BusinessPodcast #Investing #CapitalMarkets #DueDiligence #AlternativeAssets #PrivateEquity Keep every episode free: buymeacoffee.com/fexingo