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Komfie Manalo, Opalesque Asia:

A survey by data provider Preqin has found that a growing number of private real and institutional investors are offering co-investments within the asset class. The study said that 41% of surveyed fund managers offered co-investment rights to more than 80% of their investors in 2015, up from just 9% in 2014.

In contrast, 41% of fund managers did not offer any investors co-investment rights in 2014. But that proportion fell to 29% in 2015. Commented Andrew Moylan, head of real estate products at Preqin, "Real estate fund managers are recognizing how important co-investment rights are becoming to investors; most managers feel that offering co-investment rights is important during fundraising, and the vast majority currently offer or are considering offering co-investment rights to their investors. Increasingly, managers are offering these rights not just to a select few, but to most or all of the investors in their funds."

The key benefits of co-investments identified by managers include building stronger relationships with investors, accessing additional capital for deals, and improving the chances of a successful fundraise.

Co-investments also represented an increasing proportion of the equity in deals completed 2015. At least 72% of the fund managers reported that co-investment capital made up 40% or more of the equity in their 2015 deals, up from 54% that said the same in 2014.......................

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