Tailwinds for Co-Investments in 2026
| By Marta Rodriguez | 0 Comentarios

As the private equity market has evolved alongside a variety of trends and dynamics, related to markets, valuations, deal sizes, and growing demand from LPs around the world, different ways of accessing private company opportunities have emerged. One structure that has gained significant prominence in recent years is co-investments, a category that still has room to gain further traction this year, according to various industry players.
Data from Preqin shows a global landscape where more than $200 billion has been raised across over 2,400 direct co-investment funds since 2005. Moreover, capital raised hit a record in 2024 with $33.2 billion, according to figures from Chronograph, and the topic has now entered the mainstream. In investment presentations at hotels, webinars of all kinds, and meetings with boards and clients… the topic of co-investments increasingly arises in the unavoidable conversation about private markets.
The market is shifting toward a more direct investment style in private equity assets. As highlighted by the United States Private Equity Council (USPEC) in a recent article, rather than relying solely on pooled commitments, many investors are seeking a more active role in deals and greater visibility into how value is being created.
According to the organization, the “dramatic rise” in co-investments reflects “strategic, structural, and market forces” that are transforming how LPs interact with funds. In this context, they identify five key drivers behind the phenomenon: fee efficiency, interest in greater control, selective access through scale, increased strategic allocation to co-investment strategies, and growing expectations for diversification.
Tailwinds
In addition to investor appetite, ongoing changes across private equity markets have supported the rise of co-investments.
On one hand, BlackRock notes that companies are staying private for longer, due to abundant private capital, regulatory and cost pressures in public markets, and a preference for sponsor support. As a result, the firm indicated in its 2026 alternatives outlook, “deal sizes have continued to grow, and interest rates are forcing sponsors to commit more equity in each transaction.”
HMC Capital shares this view, stating that it will take years to clear the long list of companies waiting for that golden exit window. “This will create strong multi-year opportunities for investors to provide liquidity to private equity, especially through secondaries, capital solutions, and co-investments,” the firm notes in a report dedicated to private equity.
In addition, the expectation that deal volume in the private equity market will continue to grow would further fuel the expansion of these structures. “The outlook for co-investments in 2026 is closely tied to overall deal activity: as private equity deal volume increases, GPs will allocate equity portions to LPs more frequently,” they add.
From the LPs’ perspective, this backlog will increase GPs’ capital needs. Managers, they forecast, will need to support their portfolio companies for longer, sell partial stakes, recapitalize holdings, or refinance existing structures. “This will create a steady flow of co-investment opportunities in the coming years,” HMC estimates.
Areas of Interest
Breaking down the expectations for robust interest in co-investments in 2026, there are some strategies and sectors that stand out as particularly attractive. In terms of sectors and themes, there are three major areas drawing market attention: healthcare, energy, and technology.
In the field of healthcare services and life sciences, international capital views the space as a strong vector to capture global trends. The expectation, outlines BlackRock, is that the sector will be driven by population aging and the growing efficiency of digital health platforms. Added to this are advances in biotechnology, notes the USPEC, along with specialty pharmaceuticals.
In energy, the growth vector comes from the energy transition. “The push toward a low-carbon economy is driving growth across renewables, storage, and decarbonization infrastructure,” BlackRock adds.
The third vertical, technology, is tied to the impact on company operations across sectors stemming from developments in areas such as cybersecurity, cloud infrastructure, and, famously, artificial intelligence. “Investors view these assets as important for long-term growth and portfolio diversification,” notes the USPEC.
In terms of structures, HMC sees the rise of mixed co-investment funds as a clear 2026 trend, a single portfolio with pooled assets from various institutional investors, focused on mid-life transactions. “For LPs, this can provide better underwriting visibility (of assets already owned by private equity) and, potentially, faster cash flow timelines and a less pronounced J-curve compared to primaries,” the Latin American firm notes.












