The Private Equity Podcast, by Raw Selection Inside the LP Mindset & Mastering Co-Investments | Joe Basrawy, Partners Capital
Sep 30, 2025
Joe Basrawy, Managing Director at Partners Capital, provides an insightful dive into the Limited Partner (LP) mindset. He highlights common mistakes private equity firms make, like overfundraising and poor diversification. Joe shares essential strategies for successful co-investing, explaining how LPs avoid adverse selection and ensure alignment. With real-world examples, he outlines the four key pillars of top-performing PE firms: strategy differentiation, value creation, ownership dynamics, and strong leadership—all vital for attracting investor commitments.
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Avoid Overraising And Overstretching
- Avoid raising too much capital that forces you off-spec and leads to overpaying for assets.
- Maintain deal-level diversification across suppliers, customers and exit channels to improve resiliency.
Be Fast And Reliable For Co-Investments
- Be a reliable, fast co-investment partner with dedicated capital and quick yes/no decisions.
- Track capacity versus pro rata to punch above your weight and reduce adverse selection.
The Hidden Cost Of Free Co-Investments
- Co-investing removes typical fund fees and can boost net returns materially.
- But free co-investments often signal adverse selection, so investigate why GP offers it.
