Co-investments have become a cornerstone of family office venture and private equity strategies, allowing these investors to participate selectively in high-conviction deals alongside trusted venture capital firms or other family offices. In this model—often structured as club deals or side-by-side investments—family offices deploy capital directly into specific opportunities, bypassing traditional fund fees while gaining greater control and potential for enhanced returns. As of 2025, this approach dominates, with PwC’s Global Family Office Deals Study reporting that club deals and co-investments account for over 70% of many family office transactions, and in some analyses up to 83% of startup deals structured this way.
Why Co-Investments Are Surging
The rise reflects a broader shift toward direct and collaborative investing amid economic uncertainty and a pullback from traditional fund commitments. PwC notes a sharp decline in fund investments in H1 2025, contrasted by sustained activity in directs and clubs. BNY Mellon’s 2025 Investment Insights for Single Family Offices highlights thriving direct investing, with 64% of family offices anticipating six or more direct deals annually—often including co-invests for risk mitigation and access to larger opportunities.
Key drivers include:
- Fee Efficiency and Control: Co-invests eliminate or reduce the 2/20 fee structure, aligning better with family offices’ evergreen capital.
- Selective Participation: Partnering with vetted VCs provides deal flow without leading rounds, ideal for offices building internal expertise.
- Risk Diversification: Club deals pool resources among peers, enabling bigger checks in sectors like AI and sustainability.
- Patient Capital Advantage: No exit pressure allows deeper support for long-term growth.
In venture specifically, co-investments offer exposure to vetted startups while adding strategic value through networks and expertise—particularly appealing to entrepreneurial families.
Trends and Data Points for 2025
- PwC reports club deals peaking at 75% of flows in recent periods, with continued preference over solo deals.
- Over 70% of US family office transactions are now club deals, enabling access to larger, complex opportunities.
- Alternatives allocations remain high (44-54% per UBS and BNY), with co-invests facilitating thematic plays in AI, climate tech, and private markets.
Key Takeaways for Fund Managers and Entrepreneurs
- Family offices drive ~31% of global startup capital in 2025, predominantly via co-invests/clubs (70-83% of deals).
- Offer co-investment rights proactively to build trust and secure commitments.
- Emphasize alignment on timelines, impact, and strategic input—relationships via warm introductions are paramount.
This collaborative model positions co-investments as a win-win: family offices gain efficiency and influence, while fund managers and entrepreneurs access patient, value-added capital in an increasingly competitive landscape.