MLD Wealth | Co-Investments Capabilities Overview
MLD Wealth Management Group

Co‑Investment Capabilities

Direct, single-asset participation alongside institutional capital across the alternatives spectrum.

Private Equity Private Credit Real Estate Infrastructure & Energy Transition Secondaries & Continuation Vehicles Special Situations
Overview

Identified transactions, disclosed terms, institutional sponsorship.

A co-investment is a direct position in a single underlying asset, such as an operating company, a property, a platform, or a credit facility, taken alongside an institutional sponsor rather than through a commingled, blind-pool fund. Because the investor participates in an identified transaction on disclosed terms, a co-investment offers transaction-level transparency, materially reduced fee and carried-interest drag relative to a fund commitment, and the ability to express conviction in a specific asset, sector, or capital structure.

Co-investment is not an asset class. It is a method of access.

The same structure is available across private equity, private credit, real estate, infrastructure, secondaries, and special situations, and the return characteristics of any given co-investment are those of the underlying transaction.

Access is the constraint. Co-investment allocations are privately negotiated, capacity-constrained, and offered at the discretion of the transaction sponsor. They are extended to counterparties who are known to the sponsor, who can evaluate a transaction on a compressed timeline, and who can commit capital with certainty. MLD maintains relationships with institutional sponsors globally and evaluates opportunities on a transaction-by-transaction basis.

FUND COMMITMENT Investor Blind-pool commitment Commingled fund Fees and carry apply Portfolio of assets CO-INVESTMENT Investor Identified transaction, disclosed terms Direct, alongside the sponsor Single asset
Illustrative only. Simplified comparison of access structures. Terms vary by transaction.
Scope of Coverage

Opportunities are evaluated across the full alternatives spectrum.

PE

Private Equity

Single-asset positions in buyout and growth equity transactions, taken alongside the controlling sponsor at the time of acquisition or in subsequent financing rounds.

PC

Private Credit

Direct participation in senior secured, unitranche, mezzanine, and structured credit facilities originated by an institutional lender, typically on the same terms and security package as the lead.

RE

Real Estate

Direct equity or preferred equity in individual properties, portfolios, or development programs alongside an institutional owner-operator.

IN

Infrastructure & Energy Transition

Positions in core and core-plus assets, contracted power, midstream, digital infrastructure, and transition-linked platforms alongside long-duration institutional capital.

SV

Secondaries & Continuation Vehicles

Participation in single-asset and multi-asset continuation vehicles, GP-led restructurings, and LP interest transfers where new capital is required to price and fund the transaction.

SS

Special Situations

Rescue financings, structured equity, and bespoke capital solutions arising from dislocation, covenant pressure, or a constrained financing market.

Sourcing

Sponsors syndicate co-investment for structural reasons.

Understanding the origin of an opportunity is central to assessing it, because the reason capital is being sought informs the terms on which it is offered.

01

Concentration and position limits

A fund's governing documents restrict the proportion of committed capital that may be deployed into any single asset. Where a transaction exceeds that limit, the sponsor must place the balance of the equity or debt alongside the fund. The co-investor participates in a transaction the sponsor has already underwritten and elected to pursue.

02

Execution speed and certainty of funds

In competitive processes, sponsors underwrite the full commitment in order to present a single, certain counterparty to the seller, then syndicate the excess after signing. Capital that can be committed quickly and without financing contingency is materially more valuable to the sponsor than capital that cannot.

03

Continuation vehicles and GP-led secondaries

Where a sponsor wishes to hold a high-conviction asset beyond the term of the fund that owns it, the asset is transferred into a continuation vehicle. Pricing and funding that transfer require new capital, which is typically raised from secondary buyers and invited co-investors.

04

Capital structure gaps

When financing markets tighten, a syndication fails, or an incumbent lender steps back, a gap emerges in the capital structure of an otherwise sound transaction. These situations generate demand for bespoke senior debt, structured equity, or rescue capital, frequently on terms more favourable to the provider than prevailing market pricing.

05

Strategic alignment

Sponsors selectively invite capital partners who bring sector knowledge, follow-on capacity, regional relationships, or a distribution relationship they wish to develop. Allocation in these cases reflects the sponsor's assessment of the partner rather than the size of the cheque alone.

In each case the opportunity is time-sensitive and privately negotiated. Allocations move to counterparties who are known, responsive, and able to commit. That is why sourcing depends on relationships developed over time rather than on inclusion in a distribution list.

Characteristics

The economics are attractive. The risks are real.

Potential Advantages

  • Fee efficiencyCo-investments are customarily offered on reduced or nil management fee and carried interest terms relative to a primary fund commitment, improving net-to-investor economics.
  • Transaction-level transparencyThe underlying asset, capital structure, sponsor thesis, and terms are identified at the point of commitment rather than being subject to blind-pool discretion.
  • Deployment efficiencyCapital is typically drawn at or near closing, reducing the drag associated with uncalled commitments in a traditional fund structure.
  • Portfolio expressionExposure can be directed to a specific sector, geography, vintage, or position in the capital structure.

Risks and Constraints

  • Single-asset concentrationA co-investment provides no diversification. Outcomes depend on one transaction, and total loss of capital is possible.
  • Compressed diligenceSponsors impose short decision windows, which constrains the depth of independent analysis that can be undertaken before commitment.
  • Adverse selectionAn investor relying solely on syndicated opportunities has limited ability to verify that offered transactions are representative of a sponsor's wider pipeline.
  • IlliquidityCo-investments are generally held to realization, with no redemption rights and no established secondary market. Holding periods are typically measured in years and may be extended.
  • Irregular availabilityOpportunities arise episodically. Neither the timing, the volume, nor the character of future opportunities can be forecast, and there may be extended periods in which none is available.
  • Limited investor controlGovernance, exit timing, and follow-on funding decisions rest with the sponsor. Co-investors ordinarily hold minority, non-controlling positions with limited or no consent rights.
The MLD Approach

Each opportunity is considered on its own merits.

Opportunities are assessed against the sponsor's underwriting record in the relevant strategy, the alignment of the sponsor's own capital in the transaction, the position of the investment within the capital structure, and the realistic path and timeline to realization. No opportunity is distributed based on availability alone.

Suitability is assessed at the client level. Co-investments are made available only to investors who qualify under applicable exemptions, whose liquidity profile accommodates a long and uncertain holding period, and for whom a concentrated, single-asset position is appropriate in the context of the wider portfolio. Position sizing is set so that an adverse outcome in any single transaction does not impair the client's overall plan.

CLIENT PORTFOLIO Core portfolio Public markets, liquidity Alternatives Private funds Co-investment sleeve Foundation of the plan Sized so no single outcome impairs the plan
Illustrative only. Not a recommendation or target allocation. Positioning and sizing depend on each client's circumstances.
Important Disclosures

Co-Investment Transactions

Entity names are shown to illustrate the nature and calibre of past co-investment transactions in which MLD Wealth Management Group or its clients participated as a counterparty or co-underwriter. Inclusion does not imply any affiliation with, sponsorship by, endorsement by, or ongoing relationship with these firms or their affiliated funds, nor does it indicate that any such firm has reviewed, approved, or is responsible for this material. Co-investment opportunities are privately negotiated, capacity-constrained, and allocated at the sole discretion of the transaction sponsor. Past participation in a transaction does not guarantee future access to co-investment opportunities, and there is no assurance that comparable opportunities will be identified, offered, or available in the future.

Risk of Loss

Co-investments are speculative, involve a high degree of risk, and are suitable only for investors who are able to bear the loss of their entire investment. A co-investment is a concentrated position in a single asset and provides no diversification. There is no assurance that any co-investment will achieve its objectives or return any capital.

Liquidity

Investments in private markets are generally less liquid than publicly traded securities. They may be subject to restrictions on transfer and limited or no redemption opportunities, and investors may not be able to access their capital when desired. Such investments are best suited to investors with a long-term time horizon who are comfortable with reduced liquidity and the associated risks.

Eligibility

Co-investment opportunities are offered only to investors who qualify under applicable prospectus exemptions in their jurisdiction of residence. Securities described in this material are not offered by prospectus, are not listed on any exchange, and are not subject to the continuous disclosure obligations applicable to reporting issuers.

General

This material is provided for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security. Any offer will be made solely pursuant to definitive offering documents, which should be reviewed in full, including the risk factors described therein. Statements that depend on future events are forward-looking and do not guarantee performance; actual results may differ materially. Investors should obtain advice based on their own circumstances from their investment, tax, legal, and accounting advisors before making any investment decision.

MLD WEALTH
Calgary  |  Toronto  |  Vancouver

This material is for informational and discussion purposes only and does not constitute investment advice or an offer to sell or a solicitation of an offer to buy any security. Co-investments are speculative, illiquid, and available only to qualified investors under applicable prospectus exemptions. Wealth management services are provided through a CIRO member firm. Member of the Canadian Investor Protection Fund (CIPF). Subject to compliance review.