Private equity in 2025
Opportunities with co-investments in a complex market environment
In this environment, a targeted and selective investment strategy is crucial. A focus on companies that perform well regardless of market conditions can help to achieve sustainable returns. Co-investments offer an attractive solution here.
Why co-investments are particularly attractive now
Co-investments not only enable investors to select individual companies in a more targeted way, but also offer advantages that are particularly relevant in an uncertain market environment:
1. Access to superior information and enhanced decision-making
In uncertain times, every information advantage counts. Through in-depth due diligence analyses and close cooperation with general partners (GPs), co-investors gain quick and exclusive insights into markets and companies. This reduces risks and enables well-informed decisions.
2. High-quality deal flow and selective investing
Access to the best investment opportunities is crucial to private equity success. Co-investors with strong networks have a better selection advantage than many traditional GPs. Especially in a market with high valuations, it is essential to select the most attractive deals.
3. Cooperation with experienced GPs for active value enhancement
In volatile markets, it is important not only to minimise market risks, but also to leverage potential. Experienced GPs have valuable and long-standing expertise from investments across different market cycles and contribute operational improvements and strategic measures – this represents a decisive advantage for co-investors.
Co-investments: opportunities in a difficult market environment
The Golding Buyout Co-Investment 2023 Fund relies on an in-depth due diligence analysis that includes not only financial key figures but also macroeconomic and geopolitical risks. The aim is to identify not only companies that are developing stably but also those that can grow in the long term – regardless of economic fluctuations.
Using the above analytical characteristics, the following is a case study that was rejected after in-depth investment analysis by the Golding Buyout team:
Case study: selection through sound market analysis
In early 2025, the Golding Buyout team considered a co-investment in a software-as-a-service (SaaS) company that provides innovative solutions to automate customer interactions. Despite strong market positioning and high growth momentum, the investment was rejected – for good reasons.
- Excessive valuation: a thorough analysis of comparable companies showed that the price was not appropriate
- Weak financial history: the company performed below management's initial expectations
- Concentration risk: a narrow customer base posed significant vulnerability to market shifts and client-specific challenges
Selective strategies for long-term value
The «Golding Buyout Co-Investment 2023» fund takes a selective approach. With five attractive companies already in the portfolio and a promising pipeline, the team is focusing on investments that create long-term value, backed by in-depth market research and strategic partnerships with experienced GPs.
Co-investments offer institutional investors a promising opportunity to invest in the most attractive companies on the market in a targeted manner while minimising risks. In an environment of high uncertainty, this selective approach can make all the difference.
