Co-investment is when investors put money directly into a deal alongside a fund, usually with lower or no fees and no carried interest.
What the film says
In private equity, some investors get the same deal with no carry. It's called co-investment. Say a fund buys a company for five hundred million. It puts in three hundred and fifty itself. It offers the other one hundred and fifty to its investors. So why do investors care? It's a cheaper way to own more of a deal. And for the manager, it's a perk that keeps its biggest investors close. Same company. Different bill.
In the glossary: Co-investment
A simple example with round numbers, not advice. Terms vary by fund.
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