In this article, Nandini Pathak and Sanyukta Srivastav analyze the co-investment vehicle (CIV) structure proposed by the Securities and Exchange Board of India (SEBI). Their analysis focuses on the benefits for both limited partners (LPs) and general partners (GPs).
The authors also examine specific issues associated with a single-asset fund, which may or may not be a single-asset fund-of-one. They differentiate this structure from a separately managed account (SMA), highlighting how a single-asset fund could lead to a complicated cap table.
Additionally, the article presents an argument for maintaining both the co-investment policy (CPM) and CIV routes while concurrently broadening the scope of the CPM to include third-party co-investors. Finally, the authors provide a set of recommendations for an effective co-investment policy.