What if the next source of alpha in private equity isn’t funds—but individual deals? In this episode, I sit down with Rohan Parikh, Vice President at Houlihan Lokey, to discuss the rapid rise of co-investments and why they are becoming a core part of institutional portfolios. Rohan explains how extended fundraising cycles, larger deal sizes, and slower distributions have created a “perfect storm” for deal-by-deal capital, why LPs are increasingly treating co-investments as a standalone asset class, and how independent sponsors are reshaping the market. We also explore underwriting frameworks, alignment, and how relationships, not just returns, drive long-term success in this segment of private markets.

Highlights:

Why co-investments have doubled to a $300B+ market in just a few years
The “perfect storm” driving deal-by-deal fundraising
Why LPs now treat co-investments as a standalone asset class
How independent sponsors are competing with traditional PE firms
What separates a fund track record from a co-invest track record
Why alignment is often stronger in co-investments than funds
How deal vs sponsor underwriting shifts based on control
The real risk of adverse selection—and how to avoid it

Guest Bio:

Rohan Parikh is a Vice President at Houlihan Lokey, where he focuses on direct placements and co-investment fundraising within the firm’s Equity Capital Solutions business. He previously worked at PJT Park Hill in co-investment fundraising and began his career at Citi in leveraged finance. Rohan specializes in structuring and raising capital for sponsor-backed single-asset transactions and works closely with GPs and LPs across private markets.

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Sponsor:

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Disclaimer:

This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Capital. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions.

(0:00) Why Co-Investments Are Exploding in Private Equity (2:04) The New Asset Class LPs Can’t Ignore (4:55) Why Blue-Chip Investors Are Becoming Independent Sponsors (6:30) The Alignment Signal LPs Care About Most (7:27) What Makes a Co-Investment Worth Taking Seriously (10:56) How Independent Sponsors Pull Off $500M Deals (16:41) Why the Best Currency Between GPs and LPs Is a Deal (21:05) How LPs Avoid Getting the Worst Co-Investments (25:15) Why Co-Investments May Be More Aligned Than Funds (31:29) Why Blind Pool Funds Are Losing Their Grip

E356: Why Co-Investments Are Taking Over Private Equity