Co-Investment Vehicle - No Fee / No Carry Structure Setup
Recording the initial LP capital contribution into a standalone co-investment special purpose vehicle (SPV) that charges zero management fee and zero carried interest, investing alongside the main fund.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash & Cash Equivalents | Asset (+) | 5,000,000.00 | - |
| LP Capital Contributions - Co-Invest Vehicle | Equity (+) | - | 5,000,000.00 |
💡 Accountant's Note
Co-invest SPVs are single-purpose entities formed for one specific investment. LPs who receive co-invest rights (typically larger LPs as a preferred economic concession) contribute capital directly. Since no ongoing management is required, these vehicles charge no management fee or carry, providing LPs with lower-cost exposure to specific deals.
Practitioner & Systems Framework
💻 ERP Architecture
Each co-invest SPV requires its own set of books and annual financial statements. GP carries administrative burden for these vehicles. Ensure proper state registration of each SPV (typically Delaware LLC or LP).
⚠️ Audit Flags
If audited, the SPV audit is straightforward — single investment, single set of LPs. The main risk is valuation consistency between the SPV and the main fund holding the same portfolio company.
📄 Required Documentation
SPV operating agreement, LP subscription documents, wire transfer confirmation, investment committee allocation memo.
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