Ryan Chapman, President of Grove Lane Partners, joined Zoe Hunt, Host of RIA Channel, to discuss the role of co-investments in private equity portfolios and how advisors can use them to enhance diversification, transparency, and cost efficiency.
Grove Lane Partners was launched through a strategic joint venture with GCM Grosvenor to expand access to institutional-quality private alternative investments across RIAs, independent broker-dealers, and family offices. GCM Grosvenor is one of the largest co-investment managers in private markets.
Chapman highlights three key components of a private equity allocation: primary funds, secondaries, and co-investments. While all three can work together, he explains that co-investments provide direct exposure to underlying companies and can help broaden diversification across multiple managers and individual deals. A co-investment manager also provides an additional layer of due diligence and the ability to over-allocate capital to select deals from leading managers.
As clients increasingly want to understand what they own, Chapman notes that co-investments can help advisors engage clients by providing greater transparency into individual underlying companies at a deal-by-deal level. This also provides insight into how those businesses are operating and evolving.
Chapman also finds that co-investments can help reduce the overall cost of a private markets portfolio, as they may have no management fee and/or no carry. However, he cautions that RIAs should be thorough when conducting due diligence on co-investment managers, as it requires a different skill set than typical manager due diligence. He explains that RIAs need to conduct due diligence not only on the manager, but also on the company, industry, and deal itself. He also encourages RIAs to assess a manager’s experience, sponsor relationships, and track record.
WEBCAST REPLAY – New Era of Private Market Access: Co-Investments
Co-investments have long been an important tool for institutional investors seeking targeted private equity exposure, enhanced transparency, and potential fee efficiency. As private market access expands, advisors and wealth clients are increasingly evaluating how co-investments may complement diversified portfolios. GCM Grosvenor is one of the largest and most established co-investment managers in private markets, with approximately $10 billion in co-investment commitments and decades of experience investing alongside leading private equity sponsors. Grove Lane Partners broadens individual investor access to alternative investments through its strategic joint venture with GCM Grosvenor, helping advisors and clients access institutional-quality private market opportunities. In this webcast, GCM Grosvenor and Grove Lane Partners will discuss how co-investments work, why the opportunity set continues to evolve, and what advisors should consider as institutional-style private market access expands to wealth clients.
Accepted for 1 CFP / IWI / CFA CE Credit
Resources:
The Blueprint for Co-Investments: Investing Directly in Private Equity
Important Risk Information
Select risks of co-investments include: information risk, management risk, macroeconomic risk, liquidity risk, risks related to reliance on third parties, and risks related to the sale of investments. Unlike diversified primary fund commitments, co-investments concentrate capital in individual companies, increasing single-investment risk. Co-investors may also face adverse selection risk, as GPs retain discretion over which opportunities are offered. Independent due diligence is typically required on compressed timelines, and co-investors generally have limited governance rights post-close. Co-investment opportunities are not available to all investors and are not guaranteed to be available or to achieve their objectives. Diversification and due diligence processes seek to mitigate, but cannot eliminate risk, nor do they imply low risk.
GCM Grosvenor (NASDAQ: GCMG) is a global alternative asset management solutions provider across private equity, infrastructure, real estate, credit, and absolute return investment strategies. Investments in alternatives are speculative and involve substantial risk, including strategy risks, manager risks, market risks, and structural/operational risks, and may result in the possible loss of your entire investment. Past performance is not necessarily indicative of future results. No assurance can be given that any investment will achieve its given objectives or avoid losses. The views expressed are for informational purposes only and are not intended to serve as a forecast, a guarantee of future results, investment recommendations or an offer to buy or sell securities by GCM Grosvenor. All expressions of opinion are subject to change without notice in reaction to shifting market, economic, or political conditions. The investment strategies mentioned are not personalized to your financial circumstances or investment objectives, and differences in account size, the timing of transactions and market conditions prevailing at the time of investment may lead to different results. Certain information included herein may have been provided by parties not affiliated with GCM Grosvenor. GCM Grosvenor has not independently verified such information and makes no representation or warranty as to its accuracy or completeness. GCM Grosvenor® and Grosvenor® are trademarks of GCM Grosvenor and its affiliated entities. ©2026 GCM Grosvenor L.P. All rights reserved.