PECO reviews and approves each co-investment opportunity on a case-by-case basis. This allows us to build a portfolio that meets our specific investment objectives. PECO may decline to invest in a given investment opportunity without affecting our ability to participate in future investments. This gives us the flexibility to alter our investment objectives from time-to-time.
Usually PECO creates an individual target investment partnership (“Target Investment, LLC”) for each investment in a Target Company. Each Target Investment, LLC acts as a co-investor alongside the Private Equity Sponsor. Together, each Target Company is owned by the Private Equity Sponsor and the Target Investment, LLC.
Actual funding does not occur until specific co-investment opportunities are approved by PECO. This allows PECO to maximize our overall portfolio return, by maintaining control over our non-invested cash.