Co-investment, also known as “sidecar” investment, has become an increasingly popular way for investors to gain project-specific exposure through commingled real estate funds, often at lower fee levels than fund investments themselves. The strategy can offer greater control over property-type allocation and risk exposure, though it generally does not provide additional influence over financing or disposition decisions.
Despite its growth, little organized data exists on how institutional investors and real estate investment managers use and evaluate co-investment programs.
To address that gap, RCLCO Fund Advisors conducted parallel surveys of institutional real estate investors and fund managers during first quarter 2026, examining participation history, portfolio sizing, fee expectations, evaluation processes, program design and future intentions.
The results suggest co-investment has become an established complement to commingled real estate funds, but inv
