Why LPs should be cautious about co-investing

Big asset owners in Asia want do more co-investments and direct deals in private equity, but history is replete with cautionary tales of investors who tried to build up internal capabilities to that end. “Over time, there have been cycles where limited partners [LPs] have tried to staff up and do deals directly and in general it’s been hard because they have structural disadvantages,” said one senior private equity professional, who did not want to critique investors in the asset …