Fund managers frequently want to offer investors access to co-investment opportunities alongside their funds into the same underlying investments, but the administration can be costly and time consuming for relatively small structures. The Mainspring Investment Platform can be used to offer single or many investors the option to invest alongside the fund, but with far less complexity, that is fast to deploy, needs limited governance infrastructure, does not require on its own bank accounts, and is unlimited in the number of co-investments it can hold.

Setting up separate structures for numbers of individual deals can be time-consuming, expensive, and the ongoing administration and governance can become a material drag on the fund manager.  The Mainspring Investment Platform is the fund manager’s infrastructure which can be used many times over at no additional setup cost, and with all reporting and administration taken care of.

Giving investor’s the option to come into private funds can be attractive, but can be administratively a significant challenge potentially increasing the number of investors many times over. The Mainspring Investment Platform can be used to bring together these investors through the Mainspring Investment Platform nominee, which then takes care of the reporting and administration for those investors. By requiring each HNW investor to advance all of their subscription monies the manager can also have certainty that the required funds will be available.

The Mainspring Investment Platform can be used to provide solutions for a number of situations where traditional investment structuring introduces complexity or cost.  Examples can include:

• Staff co-invest: Where a fund manager wishes to allow staff to invest on a deal by deal basis into companies they have worked on. The Mainspring Investment Platform provides an elegant solution to what can be very complex particularly when the manager wants to retain control for corporate and incentivisation reasons.
• Fund thresholds: GPs often have size thresholds to better manage the number of investors, yet are keen to offer certain investors the opportunity to invest. Through the nominee a number of investors can exceed the limit.
• Liquidity: a concern around individuals as LPs in funds is that they may fail to fund or be late. The Mainspring Investment Platform can hold investors monies outside of the fund in anticipation of it being drawn down. This gives GPs certainty of available cash, without impacting the IRR.