Browse CFA Level 1

Chapter 11: Co-Investments and Direct Deals

Chapter 11: Co-Investments and Direct Deals (CFA Level 1): Key concepts, definitions, and exam tips with practical examples. Use it to reinforce intuition and avoid common pitfalls.

In this section

  • Methods of Deal Sourcing and Structuring
    Methods of Deal Sourcing and Structuring (CFA Level 1): Core Approaches to Sourcing Opportunities, Screening and Preliminary Due Diligence, and Structuring Co-Investment and Direct Deals. Key definitions, formulas, and exam tips.
  • Evaluating Co-Investment Risks and Benefits
    Evaluating Co-Investment Risks and Benefits (CFA Level 1): Key Considerations in Co-Investments, Reduced Fee Load, and Alignment of Interests with the GP. Key definitions, formulas, and exam tips.
  • Strategic Partnerships with General Partners
    Strategic Partnerships with General Partners (CFA Level 1): Building a Foundation for Strategic Partnerships, Potential Structures, and Preferred LP Status. Key definitions, formulas, and exam tips.
  • Liquidity, Governance, and Exit Scenarios
    Liquidity, Governance, and Exit Scenarios (CFA Level 1): Why Liquidity Matters, Liquidity Mismatches, and Governance Structures in Co-Investments. Key definitions, formulas, and exam tips.
  • Multi-Investor Syndications and Club Deals
    Multi-Investor Syndications and Club Deals (CFA Level 1): Understanding Multi-Investor Syndications, Club Deals: A Syndication Subset, and Governance, Term Sheets, and Alignment. Key definitions, formulas, and exam tips.
  • Due Diligence on Sponsor Reputation and Track Record
    Due Diligence on Sponsor Reputation and Track Record (CFA Level 1): Defining the Sponsor in a Co-Investment Context, Historical Performance and Key Metrics, and Internal Rate of Return (IRR). Key definitions, formulas, and exam tips.
  • Negotiation Tactics and Investment Terms
    Negotiation Tactics and Investment Terms (CFA Level 1): Setting the Stage: Understanding the Co-Investment Context, Key Negotiation Tactics, and Assess Your Bargaining Power. Key definitions, formulas, and exam tips.
  • Post-Investment Monitoring and Value Creation
    Post-Investment Monitoring and Value Creation (CFA Level 1): Essence of Monitoring, Key Tools and Techniques, and Value Creation Approaches. Key definitions, formulas, and exam tips.
  • Split-Vehicle Arrangements and Fee Structures
    Split-Vehicle Arrangements and Fee Structures (CFA Level 1): Foundational Concepts, How Split-Vehicle Arrangements Work, and Reasons for Using a Split-Vehicle. Key definitions, formulas, and exam tips.
  • Direct vs. Indirect Investment Trade-Offs
    Direct vs. Indirect Investment Trade-Offs (CFA Level 1): Key Considerations, Investment Control and Governance, and Fee Drag and Cost Dynamics. Key definitions, formulas, and exam tips.
  • Fiduciary Responsibility in Co-Investments
    Fiduciary Responsibility in Co-Investments (CFA Level 1): Understanding Fiduciary Duty in Co-Investments, Balancing Conflicts of Interest, and Duty of Loyalty and Duty of Care. Key definitions, formulas, and exam tips.
  • Conflict Resolution among Multiple Stakeholders
    Conflict Resolution among Multiple Stakeholders (CFA Level 1): Nature of Conflict in Co-Investments, Common Sources of Stakeholder Disputes, and Exit Timing and Valuation. Key definitions, formulas, and exam tips.
  • Portfolio Construction with Co-Investments
    Portfolio Construction with Co-Investments (CFA Level 1): Key Concepts in Co-Investments, Integrating Co-Investments into a Multi-Asset Portfolio, and Correlation Effects and Risk Management. Key definitions, formulas, and exam tips.
  • Risk Mitigation with Partial Exits and Recaps
    Risk Mitigation with Partial Exits and Recaps (CFA Level 1): Partial Exits: Locking in Gains While Retaining Upside, Understanding the Basics, and Potential Benefits. Key definitions, formulas, and exam tips.
  • Parallel Funds and Sidecar Vehicles
    Parallel Funds and Sidecar Vehicles (CFA Level 1): Understanding Parallel Funds, Rationale for Parallel Funds, and How Parallel Funds Operate. Key definitions, formulas, and exam tips.
  • Cross-Border Regulatory and Tax Constraints
    Cross-Border Regulatory and Tax Constraints (CFA Level 1): Beyond the Basics of Co-Investments, Foreign Ownership Laws and Sector Restrictions, and Checking Regulatory Overlays. Key definitions, formulas, and exam tips.

Important Notice: FinancialAnalystGuide.com provides supplemental CFA study materials, including mock exams, sample exam questions, and other practice resources to aid your exam preparation. These resources are not affiliated with or endorsed by the CFA Institute. CFA® and Chartered Financial Analyst® are registered trademarks owned exclusively by CFA Institute. Our content is independent, and we do not guarantee exam success. CFA Institute does not endorse, promote, or warrant the accuracy or quality of our products.