Co-Invest Economics Calculator

Co-invests typically have lower or no carry/management fee, boosting net LP return.

Fund IRR %

Fund fees + carry drag %

Co-invest size

Years held

Co-invest net IRR %

0.15%

IRR uplift bps

400

Fee savings amount

$1,000,000

How the math works

Co-invest avoids fund fees + carry drag. IRR uplift = fee + carry drag (in bps).

Fund 15% gross − 4% drag = 11% net. Co-invest = 15% (no drag). 400 bps uplift = $1M fee savings on $5M × 5 yr.

How to Use

Enter fund irr %.
Enter fund fees + carry drag %.
Enter co-invest size.
Enter years held.
Read co-invest net irr %.

Frequently Asked Questions

Co-invest economics?

Standard co-invest: 0% management fee, 0% carry (no fee no carry — NFNC). Some funds: 0.5–1.0% mgmt fee, 5–10% carry. Co-invest sized 20–50% of LP commitment to lead fund. Drives strong LP returns: average co-invest IRR 200–500 bps above fund IRR (no fee drag). Best LPs: pension funds, sovereign wealth, endowments with co-invest teams. GP perspective: scales deal capacity beyond fund constraints. Speed critical: 1–2 weeks decision required typically.

How does this fit fund/portfolio analytics?

Fund managers use this calculator alongside NAV reporting, distribution coverage, asset-level reforecasts, and LP investor reporting. ILPA reporting standards expect transparency on fees, expenses, and waterfall mechanics. AVAR, MOIC, IRR, and DPI metrics tie back to underlying asset performance. This calculator provides one component of fund-level performance attribution.

Promote and waterfall mechanics?

Standard PE real estate waterfall: 8% pref to LP, 50/50 catch-up to GP, 80/20 split above pref, sometimes second-tier 70/30 above 15%. American (deal-by-deal) vs European (whole fund) waterfalls produce materially different GP timing and risk. Catch-up and lookback provisions critical to LP. GP commitment (5–10% of fund) aligns interests.

Cap calls and distribution coverage?

Capital calls during construction/value-add phases, distributions from stabilized cash flow + dispositions. Coverage ratio: distributions / cap calls. Healthy fund > 1.5x in years 3–7. Distribution waterfall flows through LP pref → GP catch-up → split. LP investor expectations: 15–22% net IRR, 1.6–2.2x MOIC for opportunistic; 8–12% net IRR, 1.4–1.7x for core+.