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Private equity clients turn to co-investments to reduce costs

Institutional investors, including large pension funds and sovereign wealth funds, have been busy competing with buyout firms for direct investments or co-investment

A majority of investors in private equity funds expect to buy a stake in companies alongside private equity firms, as they look to reduce the cost of investment into funds.

Some 96% of 166 limited partners — investors in funds — surveyed by Rede Partners said that they expect to increase or maintain allocations to co-investments.

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