Club Deal Structures - A Primer

What is a club deal structure?

In a capital raising context, a club deal structure brings together an investment manager with a small group of like-minded investors (typically less than five) to raise capital to make investments in line with a specific investment strategy.

How do clubs differ from a traditional fund or co-investment structure?

Good question! Club deal structures can look very similar to a traditional fund structure. Usually, the main difference is the enhanced governance rights that investors may have with respect to the management and operation of the underlying investments. In addition, the investment manager may not always have full discretion to invest capital without investors either opting into (or out of) each investment. Club deals differ from co-investment structures in that a co-investment will typically focus on a single specific asset and will be made alongside a "main fund" structure with lower (or no) management fees/carried