Everything you need to understand Club Deals, from A to Z.
What are the main disadvantages compared to a fund?
The main disadvantages compared to a fund: Workload and Access to the best Deals.
What are the main advantages of investing in club deals?
The main advantages of investing in club deals: Selectivity, Cost and Time Horizon.
What asset classes are most common for club deals?
Asset classes are most common for club deals with: Private Equity, Real Estate, Private Credit, Infrastructure and Venture/Growth.
What is an “independent sponsor” and what is their role?
An independent sponsor is a dealmaker who finds and manages acquisitions but raises the equity capital deal-by-deal.
How are fees and economics typically structured?
Fees and economics are typically structured like in PE: Management Fee, Performance Fee
What are the primary risks associated with club deals?
Primary risks associated with club deals: Concentration, Execution and Costs.
Who are the typical investors and sponsors in a club deal?
The typical investors and sponsors in a club deal are Family Offices (SFO, MFO), HNWIs, Independent Sponsors, Funds, etc
Why are club deals and direct investing becoming more popular?
Club deals are becoming more popular because Investors want 3 things that funds often lack: Control, Transparency and Fee Efficiency.
What is the difference between a “club deal” and a “co-investment”?
A co-investment is typically a sidecar allocation offered by a large GP alongside their main fund
What is a club deal and how is it different from a traditional fund?
A club deal is a syndicated investment where a small group of investors pools capital to acquire a single specific asset
