The difficulties of the recent fundraising environment and the need to appeal to LPs’ interests, as well as to generate additional liquidity for deals, have compelled many GPs to spend more time, energy and attention considering how to optimize the co‑investment opportunities they offer to LPs. To support those efforts, Strafford CLE Webinars recently hosted a program entitled “Structuring Private Equity Co‑Investments and Club Deals: Risks and Opportunities for Sponsors and Investors” featuring former DLA Piper partner Nathaniel M. Marrs and Schulte Roth partner Phyllis A. Schwartz. This first article in a two-part series summarizes why co‑investment opportunities are appealing to GPs and LPs; some of the unique fund structures that can be used to facilitate co‑investments; and alternative ways to achieve the common objectives of those structures. The second article will describe the importance of access rights and preparing co‑investment documents during the offering process; detail key terms to negotiate in the fund documents; and highlight regulatory considerations for GPs to keep in mind. For additional insights from Marrs, see our two-part series on launching a real estate fund: “Key Strategies, Structures and Terms” (May 5, 2020); and “Important Tax, Regulatory and Securities Law Considerations” (May 12, 2020).