Co-investors are individuals or institutional investors who participate in the same investment opportunity together with a principal investor. This may be a private company, a property project, a venture capital or private equity investment or another type of investment.
The concept of co-investment is common in private equity and venture capital, where multiple investors pool their resources to fund a start-up or acquisition. Co-investments allow these investors to share the financial risk associated with the investment while gaining access to larger or more diverse investment opportunities than they could achieve individually. In addition, they can share due diligence, industry expertise and management oversight.