Co-investment between Limited Partners (LPs)—particularly Development Finance Institutions (DFIs) and impact investment funds—and General Partners (GPs) is now a defining feature of African private equity, especially as DFIs such as British International Investment (BII), International Finance Corporation (IFC), and Proparco seek greater impact, transparency, and influence. This model creates real advantages such as access to larger deal tickets, closer LP-GP alignment, and entry into DFI and large ticket investor networks, but also introduces challenges around governance, fee economics, and operational complexity.
The GPs that will thrive in this next phase are those treating co-investment as part of their operating DNA. In practice, that means being structurally ready to co-invest, from running joint diligence efficiently with LPs to aligning governance and reporting standards across fund and deal levels. These managers aren’t reacting to LP requests; they are designing systems that make co-investment predictable, transparent, and value-accretive. In doing so, they set
